PAGS Dividend Type Payments
Although PAGS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PagSeguro Digital Ltd. Class A Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:15 AM ET):
| PagSeguro Digital Ltd. Class A Common Shares (PAGS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 9.18 |
9.19 |
9.19 |
-0.02 |
805K |
7.7 |
3.0B |
PAGS Dividend-Like Income Using Covered Calls
With PAGS at 9.19, 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% |
0.28 |
0.1 |
| 5% |
0.46 |
0.1 |
| 10% |
0.92 |
0.3 |
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 PAGS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
10.00 |
0.20 |
38 |
0.5 |
0.81 (8.8%) |
| Jul 18 |
10.00 |
0.05 |
10 |
0.5 |
0.81 (8.8%) |
| 5% Yield On PAGS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
10.00 |
0.20 |
38 |
0.5 |
0.81 (8.8%) |
| Jul 18 |
10.00 |
0.05 |
10 |
0.5 |
0.81 (8.8%) |
| 10% Yield On PAGS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
10.00 |
0.20 |
38 |
0.5 |
0.81 (8.8%) |
| Jul 18 |
10.00 |
0.05 |
10 |
0.5 |
0.81 (8.8%) |
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