PH Dividend Type Payments

PARKER HANNIFIN dividend

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

PARKER HANNIFIN (PH)
Bid Ask Last Change Volume P/E Market Cap
158.00 164.64 159.33 -3.21 1.4M 20 22B

PH Dividend-Like Income Using Covered Calls

With PH at 159.33, 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% 4.78 1.3
5% 7.97 2.2
10% 15.93 4.4

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 PH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 180.00 0.40 30 1.3 15.36 (9.6%)
Jan 18 180.00 1.80 93 1.9 15.36 (9.6%)
5% Yield On PH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 175.00 0.90 30 3.0 10.36 (6.5%)
Jan 18 175.00 2.80 93 3.0 10.36 (6.5%)
10% Yield On PH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 170.00 1.85 30 6.2 5.36 (3.4%)
Jan 18 170.00 4.20 93 4.5 5.36 (3.4%)

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