BFAM Dividend Type Payments

Although BFAM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bright Horizons Family Solutions Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 3:05 PM ET):

Bright Horizons Family Solutions Inc. (BFAM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
104.13	104.31	104.24	+3.53	543K	29	5.7B

BFAM Dividend-Like Income Using Covered Calls

With BFAM at 104.24, 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%	3.13	0.9
5%	5.21	1.4
10%	10.42	2.9

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 BFAM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	105.00	0.20	5	4.0	0.69 (0.7%)
Jan 16	105.00	2.00	33	6.1	0.69 (0.7%)

5% Yield On BFAM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	105.00	0.20	5	4.0	0.69 (0.7%)
Jan 16	105.00	2.00	33	6.1	0.69 (0.7%)

10% Yield On BFAM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	105.00	0.20	5	4.0	0.69 (0.7%)
Jan 16	105.00	2.00	33	6.1	0.69 (0.7%)

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Want more examples? BF.B Dividend | BFIN Dividend