BLK Dividend

BLACKROCK dividend

Although BLK has a dividend of 3.13 with an ex-dividend date of Sep 6, you can sell covered calls on BLACKROCK 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):

BLACKROCK (BLK)
Bid Ask Last Change Volume P/E Market Cap
474.00 479.00 477.21 +1.82 402K 14 76B

BLK Dividend-Like Income Using Covered Calls

With BLK at 477.21, 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% 14.32 3.9
5% 23.86 6.5
10% 47.72 13.1

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 BLK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 487.50 0.20 4 5.0 8.50 (1.8%)
Aug 24 495.00 0.55 11 5.0 16.00 (3.4%)
5% Yield On BLK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 485.00 0.40 4 10.0 6.00 (1.3%)
Aug 24 490.00 0.80 11 7.3 11.00 (2.3%)
10% Yield On BLK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 482.50 0.85 4 21.3 3.50 (0.7%)
Aug 24 485.00 2.00 11 18.2 6.00 (1.3%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.FB dividend   4.CGC dividend
5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? BLHY Dividend | BLKB Dividend