PSX Dividend

Although PSX has a dividend of 1.20 with an ex-dividend date of May 19, you can sell covered calls on Phillips 66 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):

Phillips 66 (PSX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
104.45	105.78	105.78	+1.81	2.3M	21	42B

PSX Dividend-Like Income Using Covered Calls

With PSX at 105.78, 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%	3.17	0.9
5%	5.29	1.4
10%	10.58	2.9

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 PSX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	106.00	1.60	5	32.0	0.22 (0.2%)
Jun 6	106.00	4.20	40	10.5	0.22 (0.2%)

5% Yield On PSX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	106.00	1.60	5	32.0	0.22 (0.2%)
Jun 6	106.00	4.20	40	10.5	0.22 (0.2%)

10% Yield On PSX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	106.00	1.60	5	32.0	0.22 (0.2%)
Jun 6	106.00	4.20	40	10.5	0.22 (0.2%)

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Top 10 Open Interest For May 16 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	GLD dividend	1.	ZETA dividend
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4.	SLV dividend	9.	TSLA dividend	4.	SNAP dividend
5.	QQQ dividend	10.	IBIT dividend	5.	NCLH dividend

Want more examples? PSTG Dividend | PTBD Dividend