PM Dividend Type Payments
Although PM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Philip Morris International Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:50 PM ET):
| Philip Morris International Inc (PM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 96.69 | 96.71 | 96.70 | +2.64 | 5.8M | 19 | 146B |
PM Dividend-Like Income Using Covered Calls
With PM at 96.70, 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% | 2.90 | 0.8 |
| 5% | 4.84 | 1.3 |
| 10% | 9.67 | 2.6 |
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 PM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 26 | 100.00 | 0.05 | 4 | 1.3 | 3.29 (3.4%) | |
| May 3 | 100.00 | 0.15 | 11 | 1.4 | 3.29 (3.4%) | |
| 5% Yield On PM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 26 | 97.00 | 0.60 | 4 | 15.0 | 0.29 (0.3%) | |
| May 3 | 100.00 | 0.15 | 11 | 1.4 | 3.29 (3.4%) | |
| 10% Yield On PM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 26 | 97.00 | 0.60 | 4 | 15.0 | 0.29 (0.3%) | |
| May 3 | 97.00 | 1.05 | 11 | 9.5 | 0.29 (0.3%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | KWEB dividend | 1. | FSLY dividend | |
| 2. | HYG dividend | 7. | EEM dividend | 2. | EYPT dividend | |
| 3. | SPY dividend | 8. | TSLA dividend | 3. | CVNA dividend | |
| 4. | QQQ dividend | 9. | SLV dividend | 4. | DJT dividend | |
| 5. | FXI dividend | 10. | EWZ dividend | 5. | TSLA dividend | |
Want more examples? PLYA Dividend | PMT Dividend
