PHX Dividend

PANHANDLE OIL & GAS dividend

Although PHX has a dividend of 0.04 with an ex-dividend date of Aug 22, you can sell covered calls on PANHANDLE OIL & GAS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

PANHANDLE OIL & GAS (PHX)
Bid Ask Last Change Volume P/E Market Cap
18.45 19.50 18.45 -0.35 24K 21 0.3B

PHX Dividend-Like Income Using Covered Calls

With PHX at 18.45, 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% 0.55 0.2
5% 0.92 0.3
10% 1.85 0.5

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:

3% Yield On PHX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 22.50 0.15 92 0.2 3.00 (16.3%)
Feb 15 20.00 1.10 183 0.6 0.50 (2.7%)
5% Yield On PHX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 20.00 0.40 92 0.4 0.50 (2.7%)
Feb 15 20.00 1.10 183 0.6 0.50 (2.7%)
10% Yield On PHX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 20.00 1.10 183 0.6 0.50 (2.7%)

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