PG Dividend Type Payments

PROCTER & GAMBLE dividend

Although PG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROCTER & GAMBLE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

PROCTER & GAMBLE (PG)
Bid Ask Last Change Volume P/E Market Cap
81.11 81.93 81.52 +0.09 4.6M 22 203B

PG Dividend-Like Income Using Covered Calls

With PG at 81.52, here's a table showing how big the annual "dividend" (ie. 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% 2.45 0.7
5% 4.08 1.1
10% 8.15 2.2

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 PG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 83.00 0.06 5 1.2 1.07 (1.3%)
Aug 24 84.00 0.09 12 0.8 2.07 (2.5%)
5% Yield On PG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 83.00 0.06 5 1.2 1.07 (1.3%)
Aug 24 83.50 0.14 12 1.2 1.57 (1.9%)
10% Yield On PG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 82.50 0.14 5 2.8 0.57 (0.7%)
Aug 24 82.50 0.36 12 3.0 0.57 (0.7%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.SSTK dividend
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5.XLF dividend 10.FB dividend   5.SWCH dividend

Want more examples? PFXF Dividend | PGAL Dividend