BBW Dividend Type Payments

Build-A-Bear Workshop, Inc. dividend

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

Build-A-Bear Workshop, Inc. (BBW)
Bid Ask Last Change Volume P/E Market Cap
24.72 31.00 28.19 +0.65 135K 8.0 0.4B

BBW Dividend-Like Income Using Covered Calls

With BBW at 28.19, 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% 0.85 0.2
5% 1.41 0.4
10% 2.82 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 BBW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 35.00 0.30 64 0.5 4.00 (14.2%)
Sep 20 35.00 1.00 155 0.6 4.00 (14.2%)
5% Yield On BBW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 35.00 0.30 64 0.5 4.00 (14.2%)
Sep 20 35.00 1.00 155 0.6 4.00 (14.2%)
10% Yield On BBW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 32.50 2.35 246 1.0 1.50 (5.3%)

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