PSTG Dividend Type Payments
Although PSTG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Pure Storage, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
Pure Storage, Inc. Class A (PSTG) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
50.65 |
51.20 |
50.42 |
+0.61 |
2.4M |
125 |
17B |
PSTG Dividend-Like Income Using Covered Calls
With PSTG at 50.42, 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% |
1.51 |
0.4 |
5% |
2.52 |
0.7 |
10% |
5.04 |
1.4 |
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 PSTG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
55.00 |
1.10 |
52 |
2.1 |
3.80 (7.5%) |
Oct 18 |
55.00 |
0.40 |
24 |
1.7 |
3.80 (7.5%) |
5% Yield On PSTG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
55.00 |
1.10 |
52 |
2.1 |
3.80 (7.5%) |
Oct 18 |
55.00 |
0.40 |
24 |
1.7 |
3.80 (7.5%) |
10% Yield On PSTG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
55.00 |
1.10 |
52 |
2.1 |
3.80 (7.5%) |
Oct 18 |
55.00 |
0.40 |
24 |
1.7 |
3.80 (7.5%) |
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