PESI Dividend Type Payments
Although PESI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Perma-Fix Environmental Services, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:20 PM ET):
| Perma-Fix Environmental Services, Inc. (PESI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 10.55 |
10.60 |
10.58 |
-0.31 |
25K |
- |
0.2B |
PESI Dividend-Like Income Using Covered Calls
With PESI at 10.58, 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% |
0.32 |
0.1 |
| 5% |
0.53 |
0.1 |
| 10% |
1.06 |
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 PESI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
12.50 |
0.20 |
26 |
0.8 |
1.90 (18.0%) |
| Jun 20 |
12.50 |
1.25 |
180 |
0.7 |
1.90 (18.0%) |
| 5% Yield On PESI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
12.50 |
0.20 |
26 |
0.8 |
1.90 (18.0%) |
| Jun 20 |
12.50 |
1.25 |
180 |
0.7 |
1.90 (18.0%) |
| 10% Yield On PESI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
12.50 |
0.20 |
26 |
0.8 |
1.90 (18.0%) |
| Jun 20 |
12.50 |
1.25 |
180 |
0.7 |
1.90 (18.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
