Monday, November 10, 2014

Packaging Company of America, PKG delivers income

Packing Company of America, symbol PKG, has delivered for me.  But the price appreciation makes their dividend yield of just under 2.25% low enough to risk losing PKG to a call.

PKG’s earnings are $5.32 with a dividend payout of $1.60 for a 2.19% yield

Their next ex dividend date should be about December, 2014 and I will try for a January $75 call so that I pocket both the dividend and the call premium.

The Covered Call Calculation is presented in the table below.