BBT Dividend Type Payments

BB&T Corp dividend

Although BBT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BB&T Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:50 PM ET):

BB&T Corp (BBT)
Bid Ask Last Change Volume P/E Market Cap
49.08 49.09 49.09 -0.28 3.5M 13 38B

BBT Dividend-Like Income Using Covered Calls

With BBT at 49.09, 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% 1.47 0.4
5% 2.45 0.7
10% 4.91 1.3

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 BBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 50.00 0.08 3 2.7 0.91 (1.9%)
Jul 19 52.50 0.23 31 0.7 3.41 (6.9%)
5% Yield On BBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 50.00 0.08 3 2.7 0.91 (1.9%)
Jul 19 52.50 0.23 31 0.7 3.41 (6.9%)
10% Yield On BBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 50.00 0.08 3 2.7 0.91 (1.9%)
Jul 19 50.00 0.89 31 2.9 0.91 (1.9%)

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