ABX Dividend Type Payments

BARRICK GOLD dividend

Although ABX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BARRICK GOLD to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

BARRICK GOLD (ABX)
Bid Ask Last Change Volume P/E Market Cap
13.15 13.19 13.16 +0.44 28.4M - 15B

ABX Dividend-Like Income Using Covered Calls

With ABX at 13.16, here's a table showing how big the annual "dividend" (ie. 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% 0.39 0.1
5% 0.66 0.2
10% 1.32 0.4

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 ABX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 14.50 0.07 9 0.8 1.31 (10.0%)
Nov 2 15.00 0.07 16 0.4 1.81 (13.8%)
5% Yield On ABX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 14.50 0.07 9 0.8 1.31 (10.0%)
Nov 2 15.00 0.07 16 0.4 1.81 (13.8%)
10% Yield On ABX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 14.50 0.07 9 0.8 1.31 (10.0%)
Nov 2 15.00 0.07 16 0.4 1.81 (13.8%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.LLNW dividend
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5.BAC dividend 10.AMD dividend   5.UVXY dividend

Want more examples? ABUS Dividend | ACAD Dividend