BCC Dividend

BOISE CASCADE LLC dividend

Although BCC has a dividend of 0.07 with an ex-dividend date of Aug 30, you can sell covered calls on BOISE CASCADE LLC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

BOISE CASCADE LLC (BCC)
Bid Ask Last Change Volume P/E Market Cap
43.55 46.50 44.40 +1.05 382K 13 1.7B

BCC Dividend-Like Income Using Covered Calls

With BCC at 44.40, 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% 1.33 0.4
5% 2.22 0.6
10% 4.44 1.2

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 BCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 47.50 0.35 39 0.9 1.00 (2.3%)
Oct 19 50.00 0.30 67 0.4 3.50 (7.9%)
5% Yield On BCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 47.50 0.35 39 0.9 1.00 (2.3%)
Oct 19 47.50 0.75 67 1.1 1.00 (2.3%)
10% Yield On BCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 47.50 2.15 158 1.4 1.00 (2.3%)

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