BID Dividend Type Payments

SOTHEBYS dividend

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

SOTHEBYS (BID)
Bid Ask Last Change Volume P/E Market Cap
41.50 44.23 44.20 -0.40 441K 23 2.3B

BID Dividend-Like Income Using Covered Calls

With BID at 44.20, 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% 1.33 0.4
5% 2.21 0.6
10% 4.42 1.2

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 BID Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 50.00 0.25 30 0.8 5.77 (13.1%)
Jan 18 50.00 0.80 93 0.9 5.77 (13.1%)
5% Yield On BID Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 50.00 0.25 30 0.8 5.77 (13.1%)
Jan 18 50.00 0.80 93 0.9 5.77 (13.1%)
10% Yield On BID Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 49.00 0.40 30 1.3 4.77 (10.8%)
Jan 18 48.00 1.35 93 1.5 3.77 (8.5%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
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5.QQQ dividend 10.BAC dividend   5.UVXY dividend

Want more examples? BIBL Dividend | BIDU Dividend