PSL Dividend Type Payments

Although PSL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on POWERSHARES DWA CONSUMER STAPLES MOMENTUM PORTFOLI to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:50 PM ET):

Bid Ask Last Change Volume P/E Market Cap
71.18 71.56 71.39 -0.54 11K - 1.3B

PSL Dividend-Like Income Using Covered Calls

With PSL at 71.39, 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% 2.14 0.6
5% 3.57 1.0
10% 7.14 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 PSL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 72.00 1.05 129 0.8 0.44 (0.6%)
Mar 15 72.00 1.55 213 0.7 0.44 (0.6%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.JWN dividend
2.EEM dividend 7.FB dividend   2.NVDA dividend
3.QQQ dividend 8.FXI dividend   3.UVXY dividend
4.SPX dividend 9.GLD dividend   4.TUR dividend
5.BAC dividend 10.AABA dividend   5.AMAT dividend

Want more examples? PSK Dividend | PSLV Dividend