PAHC Dividend Type Payments
Although PAHC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Phibro Animal Health Corporation - Class A 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):
| Phibro Animal Health Corporation - Class A (PAHC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 20.58 |
21.89 |
21.25 |
+0.76 |
332K |
43 |
0.8B |
PAHC Dividend-Like Income Using Covered Calls
With PAHC at 21.25, 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% |
0.64 |
0.2 |
| 5% |
1.06 |
0.3 |
| 10% |
2.13 |
0.6 |
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 PAHC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
25.00 |
0.10 |
35 |
0.3 |
3.11 (14.6%) |
| Sep 19 |
22.50 |
0.55 |
190 |
0.3 |
0.61 (2.9%) |
| 5% Yield On PAHC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
25.00 |
0.90 |
190 |
0.5 |
3.11 (14.6%) |
| Mar 21 |
25.00 |
0.05 |
8 |
0.6 |
3.11 (14.6%) |
| 10% Yield On PAHC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 21 |
25.00 |
0.05 |
8 |
0.6 |
3.11 (14.6%) |
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