POWL Dividend Type Payments
Although POWL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Powell Industries, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:35 PM ET):
| Powell Industries, Inc. (POWL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 225.02 | 226.77 | 226.20 | -1.46 | 126K | 16 | 2.7B |
POWL Dividend-Like Income Using Covered Calls
With POWL at 226.20, 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% | 6.79 | 1.9 |
| 5% | 11.31 | 3.1 |
| 10% | 22.62 | 6.2 |
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 POWL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 230.00 | 13.00 | 12 | 108.3 | 3.23 (1.4%) | |
| Oct 17 | 230.00 | 23.60 | 75 | 31.5 | 3.23 (1.4%) | |
| 5% Yield On POWL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 230.00 | 13.00 | 12 | 108.3 | 3.23 (1.4%) | |
| Oct 17 | 230.00 | 23.60 | 75 | 31.5 | 3.23 (1.4%) | |
| 10% Yield On POWL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 230.00 | 13.00 | 12 | 108.3 | 3.23 (1.4%) | |
| Oct 17 | 230.00 | 23.60 | 75 | 31.5 | 3.23 (1.4%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | GLD dividend | 1. | MBX dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | GRPN dividend | |
| 3. | IWM dividend | 8. | AMZN dividend | 3. | UPST dividend | |
| 4. | SPY dividend | 9. | QQQ dividend | 4. | AAOI dividend | |
| 5. | IBIT dividend | 10. | INTC dividend | 5. | APP dividend | |
Want more examples? POWI Dividend | PPA Dividend
