BMRN Dividend Type Payments
Although BMRN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BioMarin Pharmaceutical Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:50 PM ET):
| BioMarin Pharmaceutical Inc. (BMRN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 63.39 | 63.45 | 63.42 | +0.14 | 609K | 29 | 12B |
BMRN Dividend-Like Income Using Covered Calls
With BMRN at 63.42, 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% | 1.90 | 0.5 |
| 5% | 3.17 | 0.9 |
| 10% | 6.34 | 1.7 |
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 BMRN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 65.00 | 1.50 | 17 | 8.8 | 1.55 (2.4%) | |
| Oct 17 | 65.00 | 5.60 | 171 | 3.3 | 1.55 (2.4%) | |
| 5% Yield On BMRN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 65.00 | 1.50 | 17 | 8.8 | 1.55 (2.4%) | |
| Oct 17 | 65.00 | 5.60 | 171 | 3.3 | 1.55 (2.4%) | |
| 10% Yield On BMRN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 65.00 | 1.50 | 17 | 8.8 | 1.55 (2.4%) | |
| Oct 17 | 65.00 | 5.60 | 171 | 3.3 | 1.55 (2.4%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | ZETA dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | ENVX dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | RDDT dividend | |
| 4. | SLV dividend | 9. | SNAP dividend | 4. | TDOC dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | MPW dividend | |
Want more examples? BMRA Dividend | BMY Dividend
