PL Dividend Type Payments

Planet Labs PBC Class A dividend

Although PL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Planet Labs PBC Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Planet Labs PBC Class A (PL)
Bid Ask Last Change Volume P/E Market Cap
5.42 5.48 5.42 -0.15 5.1M - 1.7B

PL Dividend-Like Income Using Covered Calls

With PL at 5.42, 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% 0.16 0.0
5% 0.27 0.1
10% 0.54 0.1

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 PL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 6.00 0.35 52 0.7 0.52 (9.6%)
Oct 17 10.00 0.10 115 0.1 4.52 (83.4%)
5% Yield On PL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 6.00 0.35 52 0.7 0.52 (9.6%)
Oct 17 10.00 0.10 115 0.1 4.52 (83.4%)
10% Yield On PL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 6.00 0.35 52 0.7 0.52 (9.6%)
Oct 17 6.00 0.75 115 0.7 0.52 (9.6%)

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