PLMR Dividend Type Payments
Although PLMR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Palomar Holdings, Inc. - Common stock to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
Palomar Holdings, Inc. - Common stock (PLMR) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
80.03 |
85.50 |
83.39 |
+2.57 |
190K |
26 |
2.0B |
PLMR Dividend-Like Income Using Covered Calls
With PLMR at 83.39, 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% |
2.50 |
0.7 |
5% |
4.17 |
1.1 |
10% |
8.34 |
2.3 |
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 PLMR Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Oct 18 |
100.00 |
2.05 |
166 |
1.2 |
14.50 (17.4%) |
5% Yield On PLMR Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Oct 18 |
100.00 |
2.05 |
166 |
1.2 |
14.50 (17.4%) |
10% Yield On PLMR Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Oct 18 |
90.00 |
4.20 |
166 |
2.5 |
4.50 (5.4%) |
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