BAM Dividend
Although BAM has a dividend of 0.44 with an ex-dividend date of Aug 29, you can sell covered calls on Brookfield Asset Management Inc Class A Limited Voting Shares 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):
| Brookfield Asset Management Inc Class A Limited Voting Shares (BAM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 61.54 | 65.17 | 62.93 | +1.39 | 3.1M | - | 99B |
BAM Dividend-Like Income Using Covered Calls
With BAM at 62.93, 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% | 1.89 | 0.5 |
| 5% | 3.15 | 0.9 |
| 10% | 6.29 | 1.7 |
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 BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 65.00 | 2.05 | 73 | 2.6 | 0.00 (0.0%) | |
| Sep 19 | 65.00 | 1.30 | 45 | 2.5 | 0.00 (0.0%) | |
| 5% Yield On BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 65.00 | 2.05 | 73 | 2.6 | 0.00 (0.0%) | |
| Sep 19 | 65.00 | 1.30 | 45 | 2.5 | 0.00 (0.0%) | |
| 10% Yield On BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 65.00 | 2.05 | 73 | 2.6 | 0.00 (0.0%) | |
| Sep 19 | 65.00 | 1.30 | 45 | 2.5 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | GLD dividend | 1. | TSSI dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | AAOI dividend | |
| 3. | IWM dividend | 8. | AMZN dividend | 3. | IONQ dividend | |
| 4. | SPY dividend | 9. | QQQ dividend | 4. | HLF dividend | |
| 5. | IBIT dividend | 10. | INTC dividend | 5. | APP dividend | |
Want more examples? BALT Dividend | BANC Dividend
