PTEN Dividend Type Payments

Patterson-UTI Energy, Inc. dividend

Although PTEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Patterson-UTI Energy, Inc. 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):

Patterson-UTI Energy, Inc. (PTEN)
Bid Ask Last Change Volume P/E Market Cap
9.18 9.39 9.33 +0.38 7.2M - 3.5B

PTEN Dividend-Like Income Using Covered Calls

With PTEN at 9.33, 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% 0.28 0.1
5% 0.47 0.1
10% 0.93 0.3

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 PTEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 10.00 1.00 213 0.5 0.61 (6.5%)
May 16 10.00 0.70 122 0.6 0.61 (6.5%)
5% Yield On PTEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 10.00 1.00 213 0.5 0.61 (6.5%)
May 16 10.00 0.70 122 0.6 0.61 (6.5%)
10% Yield On PTEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 10.00 1.00 213 0.5 0.61 (6.5%)
May 16 10.00 0.70 122 0.6 0.61 (6.5%)

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? PTCT Dividend | PTF Dividend