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 Mon 3:30 PM ET):

BECTON DICKINSON (BDX)
Bid Ask Last Change Volume P/E Market Cap
237.32 237.41 237.37 -5.89 539K 392 65B

BDX Dividend-Like Income Using Covered Calls

With BDX at 237.37, 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
Nov 16 247.50 0.10 5 2.0 10.09 (4.3%)
Nov 23 250.00 0.25 12 2.1 12.59 (5.3%)
5% Yield On BDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 245.00 0.25 5 5.0 7.59 (3.2%)
Nov 23 247.50 0.45 12 3.8 10.09 (4.3%)
10% Yield On BDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 242.50 0.65 5 13.0 5.09 (2.1%)
Nov 23 245.00 0.90 12 7.5 7.59 (3.2%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.VKTX dividend
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3.EWZ dividend 8.FXI dividend   3.AMRN dividend
4.QQQ dividend 9.BAC dividend   4.CRON dividend
5.SPX dividend 10.VXX dividend   5.TLRY dividend

Want more examples? BDSI Dividend | BEAT Dividend