BDX Dividend

BECTON DICKINSON dividend

Although BDX has a dividend of 0.75 with an ex-dividend date of Jun 7, 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 Wed 4:16 PM ET):

BECTON DICKINSON (BDX)
Bid Ask Last Change Volume P/E Market Cap
222.46 229.99 226.25 +0.71 1.3M - 60B

BDX Dividend-Like Income Using Covered Calls

With BDX at 226.25, 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% 6.79 1.9
5% 11.31 3.1
10% 22.63 6.2

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 BDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 25 230.00 0.10 3 3.3 0.01 (0.0%)
Jun 1 232.50 0.30 10 3.0 2.51 (1.1%)
5% Yield On BDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 25 230.00 0.10 3 3.3 0.01 (0.0%)
Jun 1 230.00 0.80 10 8.0 0.01 (0.0%)
10% Yield On BDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 1 230.00 0.80 10 8.0 0.01 (0.0%)
Jun 8 230.00 1.40 17 8.2 0.01 (0.0%)

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Want more examples? BDSI Dividend | BEAT Dividend