PRO Dividend Type Payments

PROS Holdings, Inc dividend

Although PRO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROS Holdings, Inc 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):

PROS Holdings, Inc (PRO)
Bid Ask Last Change Volume P/E Market Cap
41.84 41.85 41.84 -1.04 177K - 1.6B

PRO Dividend-Like Income Using Covered Calls

With PRO at 41.84, 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% 1.26 0.3
5% 2.09 0.6
10% 4.18 1.1

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 PRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 45.00 0.25 28 0.9 3.15 (7.5%)
May 17 50.00 0.30 57 0.5 8.15 (19.5%)
5% Yield On PRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 45.00 0.25 28 0.9 3.15 (7.5%)
May 17 45.00 1.35 57 2.4 3.15 (7.5%)
10% Yield On PRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 45.00 1.35 57 2.4 3.15 (7.5%)
Aug 16 45.00 2.85 148 1.9 3.15 (7.5%)

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Want more examples? PRN Dividend | PRSC Dividend