BHP Dividend Type Payments

BHP Billiton dividend

Although BHP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BHP Billiton 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):

BHP Billiton (BHP)
Bid Ask Last Change Volume P/E Market Cap
45.00 46.20 45.91 +1.01 5.9M - 0.0B

BHP Dividend-Like Income Using Covered Calls

With BHP at 45.91, 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% 1.38 0.4
5% 2.30 0.6
10% 4.59 1.3

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 BHP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 49.00 0.10 11 0.9 2.80 (6.1%)
Jan 18 50.00 0.39 39 1.0 3.80 (8.3%)
5% Yield On BHP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 49.00 0.10 11 0.9 2.80 (6.1%)
Jan 18 50.00 0.39 39 1.0 3.80 (8.3%)
10% Yield On BHP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 48.00 0.24 11 2.2 1.80 (3.9%)
Jan 18 49.00 0.59 39 1.5 2.80 (6.1%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? BHLB Dividend | BHR Dividend