BIG Dividend Type Payments

BIG LOTS dividend

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

BIG LOTS (BIG)
Bid Ask Last Change Volume P/E Market Cap
44.05 48.88 47.12 -0.89 878K 12 1.9B

BIG Dividend-Like Income Using Covered Calls

With BIG at 47.12, 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% 1.41 0.4
5% 2.36 0.6
10% 4.71 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 BIG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 55.00 0.20 38 0.5 6.12 (13.0%)
Oct 19 55.00 0.40 66 0.6 6.12 (13.0%)
5% Yield On BIG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 52.50 0.45 38 1.2 3.62 (7.7%)
Oct 19 52.50 0.80 66 1.2 3.62 (7.7%)
10% Yield On BIG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 50.00 1.20 38 3.2 1.12 (2.4%)
Oct 19 50.00 1.45 66 2.2 1.12 (2.4%)

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Want more examples? BIDU Dividend | BIIB Dividend