BJO Dividend Type Payments

Although BJO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on IPATH SER B BLOOMBERG COFFEE SUBINDEX TOTAL RETURN 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):

IPATH SER B BLOOMBERG COFFEE SUBINDEX TOTAL RETURN (BJO)
Bid Ask Last Change Volume P/E Market Cap
43.29 44.50 44.40 -0.62 54K - 0.0B

BJO Dividend-Like Income Using Covered Calls

With BJO at 44.40, 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% 2.22 0.6
10% 4.44 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 BJO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 46.00 0.90 32 2.8 1.50 (3.4%)
Dec 21 50.00 0.65 67 1.0 5.50 (12.4%)
5% Yield On BJO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 46.00 0.90 32 2.8 1.50 (3.4%)
Dec 21 50.00 0.65 67 1.0 5.50 (12.4%)
10% Yield On BJO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 46.00 0.90 32 2.8 1.50 (3.4%)
Dec 21 48.00 1.00 67 1.5 3.50 (7.9%)

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