PH Dividend

Although PH has a dividend of 1.80 with an ex-dividend date of May 9, you can sell covered calls on Parker-Hannifin Corporation 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):

Parker-Hannifin Corporation (PH)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
567.33	630.00	597.09	-0.93	615K	25	77B

PH Dividend-Like Income Using Covered Calls

With PH at 597.09, 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%	17.91	4.9
5%	29.85	8.2
10%	59.71	16.4

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 PH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	630.00	31.30	110	28.5	0.00 (0.0%)
May 16	630.00	8.80	19	46.3	0.00 (0.0%)

5% Yield On PH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	630.00	31.30	110	28.5	0.00 (0.0%)
May 16	630.00	8.80	19	46.3	0.00 (0.0%)

10% Yield On PH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	630.00	31.30	110	28.5	0.00 (0.0%)
May 16	630.00	8.80	19	46.3	0.00 (0.0%)

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