PGR Dividend Type Payments

Progressive Corp dividend

Although PGR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Progressive Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:55 PM ET):

Progressive Corp (PGR)
Bid Ask Last Change Volume P/E Market Cap
74.62 74.63 74.62 -0.38 772K 17 44B

PGR Dividend-Like Income Using Covered Calls

With PGR at 74.62, 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% 2.24 0.6
5% 3.73 1.0
10% 7.46 2.0

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 PGR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 77.50 0.40 26 1.5 2.87 (3.8%)
Jun 21 80.00 0.40 61 0.7 5.37 (7.2%)
5% Yield On PGR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 77.50 0.40 26 1.5 2.87 (3.8%)
Jun 21 77.50 1.05 61 1.7 2.87 (3.8%)
10% Yield On PGR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 75.00 1.30 26 5.0 0.37 (0.5%)
Jun 21 75.00 2.20 61 3.6 0.37 (0.5%)

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Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.COTY dividend 7.BAC dividend   2.TWTR dividend
3.EEM dividend 8.EWZ dividend   3.BCRX dividend
4.FXI dividend 9.XOP dividend   4.TSLA dividend
5.SPX dividend 10.XLF dividend   5.F dividend

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