BGFV Dividend

BIG 5 SPORTING GOODS dividend

Although BGFV has a dividend of 0.15 with an ex-dividend date of Aug 30, you can sell covered calls on BIG 5 SPORTING GOODS 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):

BIG 5 SPORTING GOODS (BGFV)
Bid Ask Last Change Volume P/E Market Cap
5.85 6.00 5.95 +0.10 270K - 0.1B

BGFV Dividend-Like Income Using Covered Calls

With BGFV at 5.95, 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% 0.18 0.0
5% 0.30 0.1
10% 0.60 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 BGFV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 7.50 0.20 151 0.1 1.50 (25.2%)
5% Yield On BGFV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 7.50 0.20 151 0.1 1.50 (25.2%)

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