BIO Dividend Type Payments

BIO-RAD LABORATORIES dividend

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

BIO-RAD LABORATORIES (BIO)
Bid Ask Last Change Volume P/E Market Cap
317.15 318.37 318.62 +3.29 85K 9.1 9.4B

BIO Dividend-Like Income Using Covered Calls

With BIO at 318.62, 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% 9.56 2.6
5% 15.93 4.4
10% 31.86 8.7

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 BIO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 330.00 2.45 32 7.7 11.63 (3.7%)
Oct 19 340.00 2.45 60 4.1 21.63 (6.8%)
5% Yield On BIO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 330.00 2.45 32 7.7 11.63 (3.7%)
Oct 19 330.00 5.30 60 8.8 11.63 (3.7%)
10% Yield On BIO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 320.00 6.40 32 20.0 1.63 (0.5%)
Oct 19 330.00 5.30 60 8.8 11.63 (3.7%)

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