PBI Dividend Type Payments
Although PBI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Pitney Bowes Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Pitney Bowes Inc. (PBI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 8.67 | 8.89 | 8.82 | +0.20 | 1.9M | - | 1.6B |
PBI Dividend-Like Income Using Covered Calls
With PBI at 8.82, 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% | 0.26 | 0.1 |
| 5% | 0.44 | 0.1 |
| 10% | 0.88 | 0.2 |
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 PBI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 10.00 | 0.25 | 26 | 1.0 | 1.11 (12.6%) | |
| Feb 14 | 10.00 | 0.20 | 5 | 4.0 | 1.11 (12.6%) | |
| 5% Yield On PBI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 10.00 | 0.25 | 26 | 1.0 | 1.11 (12.6%) | |
| Feb 14 | 10.00 | 0.20 | 5 | 4.0 | 1.11 (12.6%) | |
| 10% Yield On PBI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 7 | 10.00 | 0.25 | 26 | 1.0 | 1.11 (12.6%) | |
| Feb 14 | 10.00 | 0.20 | 5 | 4.0 | 1.11 (12.6%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | QS dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | AUR dividend | |
| 3. | TLT dividend | 8. | SLV dividend | 3. | BBAI dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | PBI dividend | |
| 5. | FXI dividend | 10. | GLD dividend | 5. | LUNR dividend | |
Want more examples? PBH Dividend | PBJ Dividend
