BFAM Dividend Type Payments

Bright Horizons Family Solutio, Inc dividend

Although BFAM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bright Horizons Family Solutio, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Bright Horizons Family Solutio, Inc (BFAM)
Bid Ask Last Change Volume P/E Market Cap
109.00 148.86 148.82 -1.02 264K 55 8.7B

BFAM Dividend-Like Income Using Covered Calls

With BFAM at 148.82, here's a table showing how big the annual "dividend" (ie. 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% 4.46 1.2
5% 7.44 2.0
10% 14.88 4.1

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
Jul 19 150.00 1.60 25 6.4 1.14 (0.8%)
Aug 16 155.00 1.15 53 2.2 6.14 (4.1%)
5% Yield On BFAM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 150.00 1.60 25 6.4 1.14 (0.8%)
Aug 16 155.00 1.15 53 2.2 6.14 (4.1%)
10% Yield On BFAM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 150.00 1.60 25 6.4 1.14 (0.8%)
Aug 16 150.00 3.20 53 6.0 1.14 (0.8%)

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