PANW Dividend Type Payments
Although PANW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Palo Alto Networks, 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):
| Palo Alto Networks, Inc. (PANW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 208.00 | 208.60 | 208.28 | +8.25 | 7.9M | 52 | 131B |
PANW Dividend-Like Income Using Covered Calls
With PANW at 208.28, 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% | 6.25 | 1.7 |
| 5% | 10.41 | 2.9 |
| 10% | 20.83 | 5.7 |
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 PANW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 210.00 | 5.25 | 18 | 29.2 | 1.40 (0.7%) | |
| Mar 14 | 210.00 | 6.30 | 25 | 25.2 | 1.40 (0.7%) | |
| 5% Yield On PANW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 210.00 | 5.25 | 18 | 29.2 | 1.40 (0.7%) | |
| Mar 14 | 210.00 | 6.30 | 25 | 25.2 | 1.40 (0.7%) | |
| 10% Yield On PANW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 210.00 | 5.25 | 18 | 29.2 | 1.40 (0.7%) | |
| Mar 14 | 210.00 | 6.30 | 25 | 25.2 | 1.40 (0.7%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | FXI dividend | 1. | FOUR dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | SEM dividend | |
| 3. | TLT dividend | 8. | SMCI dividend | 3. | LUNR dividend | |
| 4. | TSLA dividend | 9. | INTC dividend | 4. | ACVA dividend | |
| 5. | IWM dividend | 10. | MSTR dividend | 5. | GH dividend | |
Want more examples? PANL Dividend | PAR Dividend
