PSEC Dividend
Although PSEC has a dividend of 0.06 with an ex-dividend date of Mar 26, you can sell covered calls on Prospect Capital Corporation - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
Prospect Capital Corporation - Closed End Fund (PSEC) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
5.47 | 5.48 | 5.45 | -0.11 | 2.6M | - | 2.3B |
PSEC Dividend-Like Income Using Covered Calls
With PSEC at 5.45, 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% | 0.16 | 0.0 |
5% | 0.27 | 0.1 |
10% | 0.55 | 0.1 |
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 PSEC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 6.00 | 0.05 | 61 | 0.1 | 0.52 (9.5%) | |
Jun 21 | 6.00 | 0.10 | 96 | 0.1 | 0.52 (9.5%) |
5% Yield On PSEC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 6.00 | 0.05 | 61 | 0.1 | 0.52 (9.5%) | |
Jun 21 | 6.00 | 0.10 | 96 | 0.1 | 0.52 (9.5%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | SOUN dividend | |
2. | SPY dividend | 7. | QQQ dividend | 2. | MRNS dividend | |
3. | HYG dividend | 8. | EEM dividend | 3. | NOVA dividend | |
4. | FXI dividend | 9. | AAPL dividend | 4. | DLO dividend | |
5. | SLV dividend | 10. | TSLA dividend | 5. | CLSK dividend |
Want more examples? PSCH Dividend | PSEP Dividend