POL Dividend

POLYONE dividend

Although POL has a dividend of 0.18 with an ex-dividend date of Sep 13, you can sell covered calls on POLYONE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

POLYONE (POL)
Bid Ask Last Change Volume P/E Market Cap
40.88 43.14 43.13 0.00 333K 20 3.4B

POL Dividend-Like Income Using Covered Calls

With POL at 43.13, 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% 1.29 0.4
5% 2.16 0.6
10% 4.31 1.2

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 POL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 45.00 0.25 37 0.7 1.86 (4.3%)
Dec 21 45.00 1.30 128 1.0 1.86 (4.3%)
5% Yield On POL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 45.00 0.25 37 0.7 1.86 (4.3%)
Dec 21 45.00 1.30 128 1.0 1.86 (4.3%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.AMAT dividend
2.SPY dividend 7.GLD dividend   2.NVDA dividend
3.SPX dividend 8.IWM dividend   3.UVXY dividend
4.QQQ dividend 9.FB dividend   4.DE dividend
5.XLF dividend 10.GDX dividend   5.AKRX dividend

Want more examples? PODD Dividend | POOL Dividend