BETR Dividend Type Payments
Although BETR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Better Home - Class A 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):
| Better Home - Class A (BETR) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 58.20 |
59.80 |
59.87 |
+9.95 |
920K |
- |
0.8B |
BETR Dividend-Like Income Using Covered Calls
With BETR at 59.87, 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% |
1.80 |
0.5 |
| 5% |
2.99 |
0.8 |
| 10% |
5.99 |
1.6 |
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 BETR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
60.00 |
2.50 |
3 |
83.3 |
0.20 (0.3%) |
| Nov 21 |
60.00 |
11.10 |
38 |
29.2 |
0.20 (0.3%) |
| 5% Yield On BETR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
60.00 |
2.50 |
3 |
83.3 |
0.20 (0.3%) |
| Nov 21 |
60.00 |
11.10 |
38 |
29.2 |
0.20 (0.3%) |
| 10% Yield On BETR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
60.00 |
2.50 |
3 |
83.3 |
0.20 (0.3%) |
| Nov 21 |
60.00 |
11.10 |
38 |
29.2 |
0.20 (0.3%) |
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