PSX Dividend Type Payments

Phillips 66 dividend

Although PSX has no upcoming (meaning, Board-approved and announced) dividends, 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 Fri 10:55 AM ET):

Phillips 66 (PSX)
Bid Ask Last Change Volume P/E Market Cap
125.73 125.81 125.77 +0.95 995K 28 51B

PSX Dividend-Like Income Using Covered Calls

With PSX at 125.77, 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% 3.77 1.0
5% 6.29 1.7
10% 12.58 3.4

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
Jul 3 126.00 2.75 14 19.6 0.19 (0.2%)
Jul 11 126.00 3.70 22 16.8 0.19 (0.2%)
5% Yield On PSX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 3 126.00 2.75 14 19.6 0.19 (0.2%)
Jul 11 126.00 3.70 22 16.8 0.19 (0.2%)
10% Yield On PSX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 3 126.00 2.75 14 19.6 0.19 (0.2%)
Jul 11 126.00 3.70 22 16.8 0.19 (0.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Jul 18 Expiration     Top 5 High Yield
1.SLV dividend 6.TSLA dividend   1.COGT dividend
2.NVDA dividend 7.IWM dividend   2.CAPR dividend
3.SPY dividend 8.FXI dividend   3.ALT dividend
4.GLD dividend 9.AAPL dividend   4.CELC dividend
5.TLT dividend 10.CLSK dividend   5.QUBT dividend

Want more examples? PSTG Dividend | PTBD Dividend