BIO Dividend Type Payments
Although BIO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bio-Rad Laboratories, Inc. Class A 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):
Bio-Rad Laboratories, Inc. Class A (BIO) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
265.80 | 305.30 | 275.60 | -2.61 | 163K | - | 8.1B |
BIO Dividend-Like Income Using Covered Calls
With BIO at 275.60, here's a table showing how big the annual "dividend" (i.e. 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% | 8.27 | 2.3 |
5% | 13.78 | 3.8 |
10% | 27.56 | 7.6 |
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 | |
May 17 | 310.00 | 0.80 | 23 | 3.5 | 4.70 (1.7%) | |
Jun 21 | 310.00 | 1.50 | 58 | 2.6 | 4.70 (1.7%) |
5% Yield On BIO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 320.00 | 1.00 | 23 | 4.3 | 14.70 (5.3%) | |
Sep 20 | 310.00 | 11.20 | 149 | 7.5 | 4.70 (1.7%) |
10% Yield On BIO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 20 | 310.00 | 18.20 | 240 | 7.6 | 4.70 (1.7%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | QQQ dividend | 6. | EEM dividend | 1. | WOLF dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | FSLY dividend | |
3. | IWM dividend | 8. | SLV dividend | 3. | INTC dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | GRPN dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | MPW dividend |
Want more examples? BILS Dividend | BIP Dividend