BGC Dividend
Although BGC has a dividend of 0.02 with an ex-dividend date of May 20, you can sell covered calls on BGC Group, Inc. - Class A 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):
BGC Group, Inc. - Class A (BGC) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
7.96 | 8.38 | 8.22 | +0.16 | 2.9M | 115 | 3.1B |
BGC Dividend-Like Income Using Covered Calls
With BGC at 8.22, 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% | 0.25 | 0.1 |
5% | 0.41 | 0.1 |
10% | 0.82 | 0.2 |
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 BGC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 10.00 | 0.35 | 197 | 0.2 | 1.62 (19.7%) | |
Aug 16 | 10.00 | 0.10 | 106 | 0.1 | 1.62 (19.7%) |
5% Yield On BGC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 10.00 | 0.35 | 197 | 0.2 | 1.62 (19.7%) | |
Aug 16 | 9.00 | 0.35 | 106 | 0.3 | 0.62 (7.5%) |
10% Yield On BGC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 9.00 | 0.60 | 197 | 0.3 | 0.62 (7.5%) | |
Aug 16 | 9.00 | 0.35 | 106 | 0.3 | 0.62 (7.5%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | BYND dividend | |
2. | QQQ dividend | 7. | TSLA dividend | 2. | HIMS dividend | |
3. | HYG dividend | 8. | SLV dividend | 3. | BYON dividend | |
4. | SPY dividend | 9. | TLT dividend | 4. | UPST dividend | |
5. | FXI dividend | 10. | AMZN dividend | 5. | RIVN dividend |
Want more examples? BG Dividend | BGFV Dividend