PBA Dividend
Although PBA has a dividend of 0.50 with an ex-dividend date of Dec 16, you can sell covered calls on Pembina Pipeline Corp. Ordinary Shares (Canada) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:45 AM ET):
| Pembina Pipeline Corp. Ordinary Shares (Canada) (PBA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 41.47 | 41.48 | 41.47 | -0.04 | 235K | 17 | 16B |
PBA Dividend-Like Income Using Covered Calls
With PBA at 41.47, 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% | 1.24 | 0.3 |
| 5% | 2.07 | 0.6 |
| 10% | 4.15 | 1.1 |
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:
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | IWM dividend | 1. | SMR dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | CAPR dividend | |
| 3. | TSLA dividend | 8. | EEM dividend | 3. | ZETA dividend | |
| 4. | SPY dividend | 9. | EWZ dividend | 4. | NMRA dividend | |
| 5. | SLV dividend | 10. | SMCI dividend | 5. | LUNR dividend | |
Want more examples? PB Dividend | PBD Dividend
