PNQI Dividend Type Payments

Although PNQI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Powershares NASDAQ Internet to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:15 AM ET):

Powershares NASDAQ Internet (PNQI)
Bid Ask Last Change Volume P/E Market Cap
115.07 115.21 114.80 -1.34 13K - 0.0B

PNQI Dividend-Like Income Using Covered Calls

With PNQI at 114.80, here's a table showing how big the annual "dividend" (ie. 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% 3.44 0.9
5% 5.74 1.6
10% 11.48 3.1

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 PNQI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 118.00 0.05 5 1.0 2.79 (2.4%)
Jan 18 122.00 0.70 33 2.1 6.79 (5.9%)
5% Yield On PNQI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 117.00 0.45 5 9.0 1.79 (1.6%)
Jan 18 122.00 0.70 33 2.1 6.79 (5.9%)
10% Yield On PNQI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 117.00 0.45 5 9.0 1.79 (1.6%)
Jan 18 121.00 1.05 33 3.2 5.79 (5.0%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? PNNT Dividend | PNR Dividend