BEPC Dividend
Although BEPC has a dividend of 0.37 with an ex-dividend date of Aug 29, 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 |
| 32.30 |
33.97 |
33.45 |
+0.47 |
718K |
- |
5.7B |
BEPC Dividend-Like Income Using Covered Calls
With BEPC at 33.45, 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% |
1.00 |
0.3 |
| 5% |
1.67 |
0.5 |
| 10% |
3.35 |
0.9 |
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 |
| Oct 17 |
35.00 |
0.70 |
64 |
1.1 |
1.03 (3.1%) |
| Sep 19 |
35.00 |
0.40 |
36 |
1.1 |
1.03 (3.1%) |
| 5% Yield On BEPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
35.00 |
0.70 |
64 |
1.1 |
1.03 (3.1%) |
| Sep 19 |
35.00 |
0.40 |
36 |
1.1 |
1.03 (3.1%) |
| 10% Yield On BEPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
35.00 |
0.70 |
64 |
1.1 |
1.03 (3.1%) |
| Sep 19 |
35.00 |
0.40 |
36 |
1.1 |
1.03 (3.1%) |
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