PBF Dividend
Although PBF has a dividend of 0.28 with an ex-dividend date of Nov 13, you can sell covered calls on PBF Energy Inc. 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):
| PBF Energy Inc. Class A (PBF) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 30.25 | 31.10 | 30.92 | +0.34 | 1.7M | - | 3.5B |
PBF Dividend-Like Income Using Covered Calls
With PBF at 30.92, 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% | 0.93 | 0.3 |
| 5% | 1.55 | 0.4 |
| 10% | 3.09 | 0.8 |
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 PBF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 31.00 | 0.65 | 8 | 6.9 | 0.00 (0.0%) | |
| Dec 20 | 31.00 | 1.85 | 43 | 4.1 | 0.00 (0.0%) | |
| 5% Yield On PBF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 31.00 | 0.65 | 8 | 6.9 | 0.00 (0.0%) | |
| Dec 20 | 31.00 | 1.85 | 43 | 4.1 | 0.00 (0.0%) | |
| 10% Yield On PBF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 31.00 | 0.65 | 8 | 6.9 | 0.00 (0.0%) | |
| Dec 20 | 31.00 | 1.85 | 43 | 4.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | EEM dividend | 1. | IONQ dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | GRPN dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | ZI dividend | |
| 4. | SPY dividend | 9. | XLF dividend | 4. | LUNR dividend | |
| 5. | IWM dividend | 10. | EWZ dividend | 5. | BHVN dividend | |
Want more examples? PBE Dividend | PBH Dividend
