PFSI Dividend
Although PFSI has a dividend of 0.30 with an ex-dividend date of Nov 17, you can sell covered calls on PennyMac 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):
| PennyMac Financial Services, Inc. (PFSI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 51.61 | 206.41 | 129.57 | +8.66 | 1.1M | 17 | 6.3B |
PFSI Dividend-Like Income Using Covered Calls
With PFSI at 129.57, 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% | 3.89 | 1.1 |
| 5% | 6.48 | 1.8 |
| 10% | 12.96 | 3.5 |
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:
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | BHVN dividend | |
| 2. | KVUE dividend | 7. | HYG dividend | 2. | UUUU dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | SOUN dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | INBX dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | CIFR dividend | |
Want more examples? PFS Dividend | PFXF Dividend
