PAG Dividend Type Payments
Although PAG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Penske Automotive Group, Inc. 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):
| Penske Automotive Group, Inc. (PAG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 160.70 | 187.00 | 163.96 | -0.43 | 136K | 12 | 11B |
PAG Dividend-Like Income Using Covered Calls
With PAG at 163.96, 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% | 4.92 | 1.3 |
| 5% | 8.20 | 2.2 |
| 10% | 16.40 | 4.5 |
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 PAG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 20 | 190.00 | 5.50 | 309 | 1.8 | 3.00 (1.8%) | |
| Aug 21 | 190.00 | 3.00 | 218 | 1.4 | 3.00 (1.8%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KWEB dividend | 6. | HYG dividend | 1. | OCUL dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | CRML dividend | |
| 3. | NVDA dividend | 8. | INTC dividend | 3. | ONDS dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | CIFR dividend | |
| 5. | CORZ dividend | 10. | QQQ dividend | 5. | EOSE dividend | |
Want more examples? PACB Dividend | PAGP Dividend
