PPL Dividend

PPL Corp dividend

Although PPL has a dividend of 0.41 with an ex-dividend date of Mar 7, you can sell covered calls on PPL Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

PPL Corp (PPL)
Bid Ask Last Change Volume P/E Market Cap
31.41 31.74 31.64 +0.22 3.0M 12 23B

PPL Dividend-Like Income Using Covered Calls

With PPL at 31.64, 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% 0.95 0.3
5% 1.58 0.4
10% 3.16 0.9

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 PPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 32.00 0.10 22 0.5 0.26 (0.8%)
Apr 18 32.00 0.40 56 0.7 0.26 (0.8%)
5% Yield On PPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 32.00 0.10 22 0.5 0.26 (0.8%)
Apr 18 32.00 0.40 56 0.7 0.26 (0.8%)

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Want more examples? PPH Dividend | PPLC Dividend