PRGO Dividend Type Payments

PERRIGO CO PLC dividend

Although PRGO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PERRIGO CO PLC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

PERRIGO CO PLC (PRGO)
Bid Ask Last Change Volume P/E Market Cap
71.60 77.00 73.87 +1.12 1.3M 44 10B

PRGO Dividend-Like Income Using Covered Calls

With PRGO at 73.87, 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% 2.22 0.6
5% 3.69 1.0
10% 7.39 2.0

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 PRGO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 78.00 0.10 10 1.0 1.00 (1.4%)
Nov 9 80.00 0.15 24 0.6 3.00 (4.1%)
5% Yield On PRGO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 77.50 0.15 10 1.5 0.50 (0.7%)
Nov 9 79.00 0.35 24 1.5 2.00 (2.7%)
10% Yield On PRGO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 9 78.00 0.55 24 2.3 1.00 (1.4%)
Nov 16 80.00 0.85 31 2.7 3.00 (4.1%)

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