PHX Dividend

Panhandle Oil & Gas, Inc dividend

Although PHX has a dividend of 0.04 with an ex-dividend date of Feb 15, you can sell covered calls on Panhandle Oil & Gas, Inc 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, Inc (PHX)
Bid Ask Last Change Volume P/E Market Cap
15.55 15.56 15.50 -0.44 27K - 0.0B

PHX Dividend-Like Income Using Covered Calls

With PHX at 15.50, 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% 0.47 0.1
5% 0.78 0.2
10% 1.55 0.4

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 PHX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 17.50 0.10 36 0.3 1.94 (12.5%)
Feb 15 17.50 0.30 64 0.5 1.94 (12.5%)
5% Yield On PHX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 17.50 0.10 36 0.3 1.94 (12.5%)
Feb 15 17.50 0.30 64 0.5 1.94 (12.5%)
10% Yield On PHX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 17.50 0.30 64 0.5 1.94 (12.5%)
May 17 17.50 0.70 155 0.5 1.94 (12.5%)

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