PII Dividend

POLARIS INDUSTRIES dividend

Although PII has a dividend of 0.60 with an ex-dividend date of Aug 30, you can sell covered calls on POLARIS INDUSTRIES 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):

POLARIS INDUSTRIES (PII)
Bid Ask Last Change Volume P/E Market Cap
101.00 111.00 108.25 +1.05 314K 26 6.7B

PII Dividend-Like Income Using Covered Calls

With PII at 108.25, 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% 3.25 0.9
5% 5.41 1.5
10% 10.83 3.0

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 PII Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 115.00 0.80 36 2.2 4.00 (3.7%)
Dec 21 125.00 1.45 127 1.1 14.00 (12.9%)
5% Yield On PII Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 115.00 0.80 36 2.2 4.00 (3.7%)
Dec 21 120.00 2.45 127 1.9 9.00 (8.3%)
10% Yield On PII Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 115.00 4.20 127 3.3 4.00 (3.7%)
Jan 18 115.00 4.60 155 3.0 4.00 (3.7%)

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Want more examples? PIE Dividend | PILL Dividend