BEPC Dividend
Although BEPC has a dividend of 0.36 with an ex-dividend date of May 31, you can sell covered calls on Brookfield Renewable Corporation Class A Subordinate Voting Shares 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):
Brookfield Renewable Corporation Class A Subordinate Voting Shares (BEPC) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
27.50 |
28.57 |
28.37 |
+1.34 |
2.3M |
- |
4.7B |
BEPC Dividend-Like Income Using Covered Calls
With BEPC at 28.37, 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% |
0.85 |
0.2 |
5% |
1.42 |
0.4 |
10% |
2.84 |
0.8 |
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 BEPC Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Aug 16 |
30.00 |
1.20 |
106 |
1.1 |
1.43 (5.0%) |
May 17 |
30.00 |
0.10 |
15 |
0.7 |
1.43 (5.0%) |
5% Yield On BEPC Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Aug 16 |
30.00 |
1.20 |
106 |
1.1 |
1.43 (5.0%) |
May 17 |
30.00 |
0.10 |
15 |
0.7 |
1.43 (5.0%) |
10% Yield On BEPC Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Aug 16 |
30.00 |
1.20 |
106 |
1.1 |
1.43 (5.0%) |
Jul 19 |
30.00 |
0.80 |
78 |
1.0 |
1.43 (5.0%) |
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