PH Dividend Type Payments
Although PH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Parker-Hannifin Corporation 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):
Parker-Hannifin Corporation (PH) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
500.00 | 547.01 | 539.72 | +5.07 | 533K | 26 | 69B |
PH Dividend-Like Income Using Covered Calls
With PH at 539.72, 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% | 16.19 | 4.4 |
5% | 26.99 | 7.4 |
10% | 53.97 | 14.8 |
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 | |
May 17 | 550.00 | 12.70 | 26 | 48.8 | 2.99 (0.6%) | |
Jun 21 | 550.00 | 19.30 | 61 | 31.6 | 2.99 (0.6%) |
5% Yield On PH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 550.00 | 12.70 | 26 | 48.8 | 2.99 (0.6%) | |
Jun 21 | 550.00 | 19.30 | 61 | 31.6 | 2.99 (0.6%) |
10% Yield On PH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 550.00 | 12.70 | 26 | 48.8 | 2.99 (0.6%) | |
Jun 21 | 550.00 | 19.30 | 61 | 31.6 | 2.99 (0.6%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SPY dividend | 6. | KWEB dividend | 1. | CVNA dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | FSLY dividend | |
3. | HYG dividend | 8. | TSLA dividend | 3. | PENN dividend | |
4. | QQQ dividend | 9. | SLV dividend | 4. | SNAP dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | CLSK dividend |
Want more examples? PGX Dividend | PHAT Dividend