PBH Dividend Type Payments
Although PBH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Prestige Consumer Healthcare Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:20 PM ET):
| Prestige Consumer Healthcare Inc. (PBH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 80.44 | 80.53 | 80.48 | +0.40 | 205K | 20 | 4.0B |
PBH Dividend-Like Income Using Covered Calls
With PBH at 80.48, 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% | 2.41 | 0.7 |
| 5% | 4.02 | 1.1 |
| 10% | 8.05 | 2.2 |
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. | EEM dividend | 1. | GRPN dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | ZI dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | APLT dividend | |
| 4. | SPY dividend | 9. | XLF dividend | 4. | LUNR dividend | |
| 5. | IWM dividend | 10. | EWZ dividend | 5. | AAP dividend | |
Want more examples? PBF Dividend | PBI Dividend
