PEG Dividend Type Payments
Although PEG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Public Service Enterprise Group Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:05 PM ET):
| Public Service Enterprise Group Incorporated (PEG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 84.82 | 84.86 | 84.85 | -0.55 | 590K | 21 | 43B |
PEG Dividend-Like Income Using Covered Calls
With PEG at 84.85, 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% | 2.55 | 0.7 |
| 5% | 4.24 | 1.2 |
| 10% | 8.49 | 2.3 |
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 PEG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 85.00 | 6.50 | 232 | 2.8 | 0.14 (0.2%) | |
| May 16 | 85.00 | 5.00 | 141 | 3.5 | 0.14 (0.2%) | |
| 5% Yield On PEG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 85.00 | 6.50 | 232 | 2.8 | 0.14 (0.2%) | |
| May 16 | 85.00 | 5.00 | 141 | 3.5 | 0.14 (0.2%) | |
| 10% Yield On PEG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 85.00 | 6.50 | 232 | 2.8 | 0.14 (0.2%) | |
| May 16 | 85.00 | 5.00 | 141 | 3.5 | 0.14 (0.2%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | XLF dividend | 1. | NMRA dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | RGTI dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | QUBT dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | JSPR dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | RIOT dividend | |
Want more examples? PEBO Dividend | PEGA Dividend
