PG Dividend Type Payments
Although PG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Procter & Gamble Company (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Procter & Gamble Company (The) (PG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 169.54 | 169.77 | 169.53 | -0.63 | 4.3M | 29 | 401B |
PG Dividend-Like Income Using Covered Calls
With PG at 169.53, 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% | 5.09 | 1.4 |
| 5% | 8.48 | 2.3 |
| 10% | 16.95 | 4.6 |
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 PG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 3 | 170.00 | 0.88 | 8 | 11.0 | 0.23 (0.1%) | |
| Jan 10 | 170.00 | 1.48 | 15 | 9.9 | 0.23 (0.1%) | |
| 5% Yield On PG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 3 | 170.00 | 0.88 | 8 | 11.0 | 0.23 (0.1%) | |
| Jan 10 | 170.00 | 1.48 | 15 | 9.9 | 0.23 (0.1%) | |
| 10% Yield On PG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 3 | 170.00 | 0.88 | 8 | 11.0 | 0.23 (0.1%) | |
| Jan 10 | 170.00 | 1.48 | 15 | 9.9 | 0.23 (0.1%) | |
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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. | QBTS dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | QUBT dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | QS dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | JSPR dividend | |
Want more examples? PFXF Dividend | PGC Dividend
