PKG Dividend Type Payments

Although PKG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Packaging Corporation of America to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Packaging Corporation of America (PKG)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
225.55	239.12	235.20	+2.55	634K	27	21B

PKG Dividend-Like Income Using Covered Calls

With PKG at 235.20, 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%	7.06	1.9
5%	11.76	3.2
10%	23.52	6.4

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 PKG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	240.00	6.90	93	7.4	0.88 (0.4%)
Jul 18	240.00	11.80	185	6.4	0.88 (0.4%)

5% Yield On PKG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	240.00	6.90	93	7.4	0.88 (0.4%)
Jul 18	240.00	11.80	185	6.4	0.88 (0.4%)

10% Yield On PKG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	240.00	6.90	93	7.4	0.88 (0.4%)
Feb 21	240.00	4.60	38	12.1	0.88 (0.4%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Jan 17 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	TSLA dividend	1.	RCAT dividend
2.	SLV dividend	7.	INTC dividend	2.	XP dividend
3.	AAPL dividend	8.	XLF dividend	3.	RXRX dividend
4.	SPY dividend	9.	TLT dividend	4.	RGTI dividend
5.	EEM dividend	10.	IWM dividend	5.	DNA dividend

Want more examples? PKE Dividend | PKOH Dividend