PII Dividend
Although PII has a dividend of 0.66 with an ex-dividend date of Dec 2, you can sell covered calls on Polaris Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Polaris Inc. (PII) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 68.95 | 71.66 | 71.33 | +0.49 | 501K | 20 | 4.0B |
PII Dividend-Like Income Using Covered Calls
With PII at 71.33, 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% | 2.14 | 0.6 |
| 5% | 3.57 | 1.0 |
| 10% | 7.13 | 2.0 |
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 PII Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 75.00 | 0.60 | 11 | 5.5 | 3.34 (4.7%) | |
| Dec 20 | 75.00 | 1.80 | 46 | 3.9 | 3.34 (4.7%) | |
| 5% Yield On PII Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 75.00 | 0.60 | 11 | 5.5 | 3.34 (4.7%) | |
| Dec 20 | 75.00 | 1.80 | 46 | 3.9 | 3.34 (4.7%) | |
| 10% Yield On PII Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 75.00 | 0.60 | 11 | 5.5 | 3.34 (4.7%) | |
| Dec 20 | 75.00 | 1.80 | 46 | 3.9 | 3.34 (4.7%) | |
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | TLT dividend | 1. | SMCI dividend | |
| 2. | NVDA dividend | 7. | IWM dividend | 2. | UPST dividend | |
| 3. | SLV dividend | 8. | EWZ dividend | 3. | AFRM dividend | |
| 4. | SPY dividend | 9. | TSLA dividend | 4. | FSLY dividend | |
| 5. | EEM dividend | 10. | QQQ dividend | 5. | PINS dividend | |
Want more examples? PIFI Dividend | PILL Dividend
