PX Dividend Type Payments

PRAXAIR dividend

Although PX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PRAXAIR to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:50 PM ET):

PRAXAIR (PX)
Bid Ask Last Change Volume P/E Market Cap
159.91 159.95 159.90 -0.77 915K 33 46B

PX Dividend-Like Income Using Covered Calls

With PX at 159.90, 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% 4.80 1.3
5% 8.00 2.2
10% 15.99 4.4

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 PX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 170.00 0.05 3 1.7 10.05 (6.3%)
Oct 26 170.00 0.70 10 7.0 10.05 (6.3%)
5% Yield On PX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 167.50 0.15 3 5.0 7.55 (4.7%)
Oct 26 170.00 0.70 10 7.0 10.05 (6.3%)
10% Yield On PX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 167.50 0.15 3 5.0 7.55 (4.7%)
Oct 26 170.00 0.70 10 7.0 10.05 (6.3%)

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

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.LLNW dividend
2.SPX dividend 7.MU dividend   2.CLVS dividend
3.QQQ dividend 8.FXI dividend   3.UVXY dividend
4.EEM dividend 9.IWM dividend   4.ERIC dividend
5.BAC dividend 10.AMD dividend   5.CRON dividend

Want more examples? PWZ Dividend | PXD Dividend