BDX Dividend Type Payments

Becton Dickinson dividend

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

Becton Dickinson (BDX)
Bid Ask Last Change Volume P/E Market Cap
225.10 250.00 237.43 +4.93 1.8M 72 63B

BDX Dividend-Like Income Using Covered Calls

With BDX at 237.43, 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% 7.12 2.0
5% 11.87 3.3
10% 23.74 6.5

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 BDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 10 257.50 0.40 16 2.5 7.50 (3.2%)
May 17 260.00 0.55 23 2.4 10.00 (4.2%)
5% Yield On BDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 10 255.00 0.55 16 3.4 5.00 (2.1%)
May 17 255.00 0.80 23 3.5 5.00 (2.1%)
10% Yield On BDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 10 250.00 1.05 16 6.6 0.00 (0.0%)
May 17 250.00 1.90 23 8.3 0.00 (0.0%)

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Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.INTC dividend
2.COTY dividend 7.BAC dividend   2.GRUB dividend
3.EEM dividend 8.XOP dividend   3.MU dividend
4.FXI dividend 9.EWZ dividend   4.NVDA dividend
5.SPX dividend 10.VXXB dividend   5.JNPR dividend

Want more examples? BDSI Dividend | BEAT Dividend