PFS Dividend
Although PFS has a dividend of 0.24 with an ex-dividend date of Apr 26, you can sell covered calls on Provident Financial Services, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
Provident Financial Services, Inc (PFS) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
15.30 | 15.59 | 15.55 | +0.03 | 1.2M | 9.1 | 1.2B |
PFS Dividend-Like Income Using Covered Calls
With PFS at 15.55, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
Annual Yield | Annual Premium | Cents/Day |
---|---|---|
3% | 0.47 | 0.1 |
5% | 0.78 | 0.2 |
10% | 1.56 | 0.4 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
3% Yield On PFS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jul 19 | 17.50 | 0.25 | 87 | 0.3 | 1.91 (12.3%) | |
Oct 18 | 17.50 | 0.55 | 178 | 0.3 | 1.91 (12.3%) |
5% Yield On PFS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jul 19 | 17.50 | 0.25 | 87 | 0.3 | 1.91 (12.3%) | |
Oct 18 | 17.50 | 0.55 | 178 | 0.3 | 1.91 (12.3%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | SNAP dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | META dividend | |
3. | QQQ dividend | 8. | TSLA dividend | 3. | FSLY dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | CVNA dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend |
Want more examples? PFMT Dividend | PFSI Dividend