PTH Dividend Type Payments

Although PTH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Powershares DWA Health Care Momentum Portfolio 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):

Powershares DWA Health Care Momentum Portfolio (PTH)
Bid Ask Last Change Volume P/E Market Cap
75.83 76.14 76.14 -1.94 15K - 0.0B

PTH Dividend-Like Income Using Covered Calls

With PTH at 76.14, 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% 2.28 0.6
5% 3.81 1.0
10% 7.61 2.1

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 PTH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 77.00 0.55 8 6.9 0.86 (1.1%)
Jan 18 80.00 0.40 36 1.1 3.86 (5.1%)
5% Yield On PTH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 77.00 0.55 8 6.9 0.86 (1.1%)
Jan 18 80.00 0.40 36 1.1 3.86 (5.1%)
10% Yield On PTH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 77.00 0.55 8 6.9 0.86 (1.1%)
Jan 18 79.00 1.20 36 3.3 2.86 (3.8%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? PTF Dividend | PTI Dividend