PBI Dividend

Although PBI has a dividend of 0.05 with an ex-dividend date of Nov 18, you can sell covered calls on Pitney Bowes Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:00 PM ET):

Pitney Bowes Inc. (PBI)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
7.87	7.88	7.87	-0.18	2.5M	-	1.4B

PBI Dividend-Like Income Using Covered Calls

With PBI at 7.87, 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%	0.24	0.1
5%	0.39	0.1
10%	0.79	0.2

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:

3% Yield On PBI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 6	8.00	0.35	29	1.2	0.12 (1.5%)
Dec 13	8.00	0.25	36	0.7	0.12 (1.5%)

5% Yield On PBI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 6	8.00	0.35	29	1.2	0.12 (1.5%)
Dec 13	8.00	0.25	36	0.7	0.12 (1.5%)

10% Yield On PBI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 6	8.00	0.35	29	1.2	0.12 (1.5%)
Dec 13	8.00	0.25	36	0.7	0.12 (1.5%)

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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.	SMR dividend
3.	SLV dividend	8.	TSLA dividend	3.	ZI dividend
4.	SPY dividend	9.	XLF dividend	4.	OKLO dividend
5.	IWM dividend	10.	EWZ dividend	5.	APLT dividend

Want more examples? PBH Dividend | PBJ Dividend