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 Tue 4:16 PM ET):
| Palomar Holdings, Inc. - Common stock (PLMR) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 157.30 |
171.01 |
160.02 |
-0.04 |
164K |
32 |
4.3B |
PLMR Dividend-Like Income Using Covered Calls
With PLMR at 160.02, 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% |
4.80 |
1.3 |
| 5% |
8.00 |
2.2 |
| 10% |
16.00 |
4.4 |
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 PLMR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
175.00 |
1.90 |
53 |
3.6 |
3.99 (2.5%) |
| Oct 17 |
175.00 |
6.00 |
116 |
5.2 |
3.99 (2.5%) |
| 5% Yield On PLMR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
175.00 |
1.90 |
53 |
3.6 |
3.99 (2.5%) |
| Oct 17 |
175.00 |
6.00 |
116 |
5.2 |
3.99 (2.5%) |
| 10% Yield On PLMR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
175.00 |
6.00 |
116 |
5.2 |
3.99 (2.5%) |
| Jan 16 |
175.00 |
11.20 |
207 |
5.4 |
3.99 (2.5%) |
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