PK Dividend
Although PK has a dividend of 0.25 with an ex-dividend date of Jun 30, you can sell covered calls on Park Hotels & Resorts Inc. 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):
| Park Hotels & Resorts Inc. (PK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 10.36 | 10.45 | 10.38 | -0.03 | 3.5M | 18 | 2.1B |
PK Dividend-Like Income Using Covered Calls
With PK at 10.38, 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% | 0.31 | 0.1 |
| 5% | 0.52 | 0.1 |
| 10% | 1.04 | 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 PK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 12.50 | 0.15 | 162 | 0.1 | 2.05 (19.7%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | TSLA dividend | 2. | VALE dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | AUPH dividend | |
| 4. | QQQ dividend | 9. | GLD dividend | 4. | HE dividend | |
| 5. | IWM dividend | 10. | INTC dividend | 5. | NMAX dividend | |
Want more examples? PJT Dividend | PKB Dividend
