PBT Dividend Type Payments

Although PBT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Permian Basin Royalty Trust to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:25 AM ET):

Permian Basin Royalty Trust (PBT)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
12.48	12.59	12.54	+0.04	19K	18	0.6B

PBT Dividend-Like Income Using Covered Calls

With PBT at 12.54, 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%	0.38	0.1
5%	0.63	0.2
10%	1.25	0.3

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 PBT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 20	15.00	0.45	219	0.2	2.41 (19.2%)
Mar 21	15.00	0.25	128	0.2	2.41 (19.2%)

5% Yield On PBT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 20	15.00	0.45	219	0.2	2.41 (19.2%)
Mar 21	15.00	0.25	128	0.2	2.41 (19.2%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Nov 15 Expiration				Top 5 High Yield
1.	FXI dividend	6.	IWM dividend	1.	LUNR dividend
2.	NVDA dividend	7.	TLT dividend	2.	JOBY dividend
3.	TSLA dividend	8.	EEM dividend	3.	AMAT dividend
4.	SPY dividend	9.	EWZ dividend	4.	CAPR dividend
5.	SLV dividend	10.	SMCI dividend	5.	DLO dividend

Want more examples? PBR.A Dividend | PBW Dividend