PPBI Dividend Type Payments
Although PPBI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Pacific Premier Bancorp Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:05 AM ET):
| Pacific Premier Bancorp Inc (PPBI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 24.34 | 24.38 | 24.38 | +0.43 | 51K | - | 2.3B |
PPBI Dividend-Like Income Using Covered Calls
With PPBI at 24.38, 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% | 0.73 | 0.2 |
| 5% | 1.22 | 0.3 |
| 10% | 2.44 | 0.7 |
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 PPBI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 25.00 | 0.45 | 157 | 0.3 | 0.62 (2.5%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | DNA dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | IOVA dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | RUM dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | RGTI dividend | |
| 5. | EEM dividend | 10. | IWM dividend | 5. | PRCH dividend | |
Want more examples? PPA Dividend | PPBT Dividend
