BK Dividend Type Payments
Although BK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on The Bank of New York Mellon Corporation 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):
| The Bank of New York Mellon Corporation (BK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 111.00 | 114.44 | 113.56 | -0.79 | 3.6M | 17 | 80B |
BK Dividend-Like Income Using Covered Calls
With BK at 113.56, 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% | 3.41 | 0.9 |
| 5% | 5.68 | 1.6 |
| 10% | 11.36 | 3.1 |
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 BK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 115.00 | 0.10 | 3 | 3.3 | 0.56 (0.5%) | |
| Jan 16 | 115.00 | 2.90 | 31 | 9.4 | 0.56 (0.5%) | |
| 5% Yield On BK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 115.00 | 0.10 | 3 | 3.3 | 0.56 (0.5%) | |
| Jan 16 | 115.00 | 2.90 | 31 | 9.4 | 0.56 (0.5%) | |
| 10% Yield On BK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 115.00 | 0.10 | 3 | 3.3 | 0.56 (0.5%) | |
| Jan 16 | 115.00 | 2.90 | 31 | 9.4 | 0.56 (0.5%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | OMER dividend | |
| 2. | SPY dividend | 7. | NFLX dividend | 2. | TMC dividend | |
| 3. | IBIT dividend | 8. | SLV dividend | 3. | TLRY dividend | |
| 4. | QQQ dividend | 9. | XLF dividend | 4. | BMNR dividend | |
| 5. | TLT dividend | 10. | AMZN dividend | 5. | ALT dividend | |
Want more examples? BJRI Dividend | BKAG Dividend
