BAK Dividend Type Payments

BRASKEM dividend

Although BAK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BRASKEM 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):

BRASKEM (BAK)
Bid Ask Last Change Volume P/E Market Cap
26.50 31.01 29.80 +0.50 298K 18 11B

BAK Dividend-Like Income Using Covered Calls

With BAK at 29.80, 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% 0.89 0.2
5% 1.49 0.4
10% 2.98 0.8

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 BAK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 35.00 0.65 96 0.7 3.99 (13.4%)
Mar 15 35.00 1.20 180 0.7 3.99 (13.4%)
5% Yield On BAK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 35.00 0.65 96 0.7 3.99 (13.4%)
Mar 15 35.00 1.20 180 0.7 3.99 (13.4%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.GERN dividend
2.SPY dividend 7.EWZ dividend   2.TGTX dividend
3.SPX dividend 8.FXI dividend   3.ORCL dividend
4.QQQ dividend 9.GLD dividend   4.TLRY dividend
5.XLF dividend 10.GDX dividend   5.MDXG dividend

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