PKG Dividend Type Payments

Packaging Corporation of America dividend

Although PKG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Packaging Corporation of America 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):

Packaging Corporation of America (PKG)
Bid Ask Last Change Volume P/E Market Cap
196.21 220.00 205.90 -1.34 433K 22 19B

PKG Dividend-Like Income Using Covered Calls

With PKG at 205.90, 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% 6.18 1.7
5% 10.30 2.8
10% 20.59 5.6

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 PKG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 220.00 0.85 36 2.4 0.00 (0.0%)
Oct 17 220.00 2.55 99 2.6 0.00 (0.0%)
5% Yield On PKG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 220.00 7.00 190 3.7 0.00 (0.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Jul 18 Expiration     Top 5 High Yield
1.NVDA dividend 6.GLD dividend   1.NFE dividend
2.SLV dividend 7.AAPL dividend   2.APPS dividend
3.SPY dividend 8.IBIT dividend   3.BRSL dividend
4.TSLA dividend 9.TLT dividend   4.METC dividend
5.IWM dividend 10.QQQ dividend   5.PROK dividend

Want more examples? PKE Dividend | PKOH Dividend