BE Dividend Type Payments
Although BE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bloom Energy Corporation Class A 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):
| Bloom Energy Corporation Class A (BE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 98.77 |
98.96 |
98.69 |
+11.80 |
11.5M |
1086 |
41B |
BE Dividend-Like Income Using Covered Calls
With BE at 98.69, 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% |
2.96 |
0.8 |
| 5% |
4.93 |
1.4 |
| 10% |
9.87 |
2.7 |
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 BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
100.00 |
10.60 |
36 |
29.4 |
1.04 (1.1%) |
| Jan 9 |
100.00 |
4.75 |
8 |
59.4 |
1.04 (1.1%) |
| 5% Yield On BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
100.00 |
10.60 |
36 |
29.4 |
1.04 (1.1%) |
| Jan 9 |
100.00 |
4.75 |
8 |
59.4 |
1.04 (1.1%) |
| 10% Yield On BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
100.00 |
10.60 |
36 |
29.4 |
1.04 (1.1%) |
| Jan 9 |
100.00 |
4.75 |
8 |
59.4 |
1.04 (1.1%) |
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