PSX Dividend
Although PSX has a dividend of 1.20 with an ex-dividend date of Aug 19, you can sell covered calls on Phillips 66 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:05 PM ET):
| Phillips 66 (PSX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 121.94 | 121.98 | 121.96 | +1.92 | 1.1M | 29 | 49B |
PSX Dividend-Like Income Using Covered Calls
With PSX at 121.96, 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% | 3.66 | 1.0 |
| 5% | 6.10 | 1.7 |
| 10% | 12.20 | 3.3 |
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 PSX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 122.00 | 3.00 | 24 | 12.5 | 0.02 (0.0%) | |
| Sep 12 | 122.00 | 3.30 | 31 | 10.6 | 0.02 (0.0%) | |
| 5% Yield On PSX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 122.00 | 3.00 | 24 | 12.5 | 0.02 (0.0%) | |
| Sep 12 | 122.00 | 3.30 | 31 | 10.6 | 0.02 (0.0%) | |
| 10% Yield On PSX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 122.00 | 3.00 | 24 | 12.5 | 0.02 (0.0%) | |
| Sep 12 | 122.00 | 3.30 | 31 | 10.6 | 0.02 (0.0%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IBIT dividend | 1. | QUBT dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | AAP dividend | |
| 3. | SPY dividend | 8. | GLD dividend | 3. | DLO dividend | |
| 4. | TSLA dividend | 9. | AMZN dividend | 4. | SGML dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | CRML dividend | |
Want more examples? PSTG Dividend | PTBD Dividend
