PRO Dividend Type Payments

PROS Holdings, Inc. dividend

Although PRO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROS Holdings, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:00 PM ET):

PROS Holdings, Inc. (PRO)
Bid Ask Last Change Volume P/E Market Cap
21.75 21.78 21.76 +0.02 420K - 1.0B

PRO Dividend-Like Income Using Covered Calls

With PRO at 21.76, 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% 0.65 0.2
5% 1.09 0.3
10% 2.18 0.6

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 PRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 22.50 1.10 218 0.5 0.72 (3.3%)
May 16 22.50 0.95 127 0.7 0.72 (3.3%)
5% Yield On PRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 22.50 1.10 218 0.5 0.72 (3.3%)
May 16 22.50 0.95 127 0.7 0.72 (3.3%)
10% Yield On PRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 22.50 0.95 127 0.7 0.72 (3.3%)
Dec 19 25.00 2.60 344 0.8 3.22 (14.8%)

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Want more examples? PRN Dividend | PROF Dividend