PRMW Dividend Type Payments

Primo Water Corporation dividend

Although PRMW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Primo Water Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:25 AM ET):

Primo Water Corporation (PRMW)
Bid Ask Last Change Volume P/E Market Cap
18.71 18.72 18.72 -0.13 111K 13 3.0B

PRMW Dividend-Like Income Using Covered Calls

With PRMW at 18.72, 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% 0.56 0.2
5% 0.94 0.3
10% 1.87 0.5

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 PRMW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 20.00 0.20 23 0.9 1.28 (6.8%)
Jun 21 20.00 0.35 58 0.6 1.28 (6.8%)
5% Yield On PRMW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 20.00 0.20 23 0.9 1.28 (6.8%)
Jun 21 20.00 0.35 58 0.6 1.28 (6.8%)
10% Yield On PRMW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 20.00 0.20 23 0.9 1.28 (6.8%)
Jun 21 20.00 0.35 58 0.6 1.28 (6.8%)

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