BMY Dividend Type Payments

Bristol-Myers Squibb Co dividend

Although BMY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bristol-Myers Squibb Co 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):

Bristol-Myers Squibb Co (BMY)
Bid Ask Last Change Volume P/E Market Cap
49.44 49.72 49.72 -0.40 15.1M - 0.0B

BMY Dividend-Like Income Using Covered Calls

With BMY at 49.72, 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% 1.49 0.4
5% 2.49 0.7
10% 4.97 1.4

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 BMY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 25 59.00 0.02 4 0.5 9.28 (18.7%)
Feb 1 61.00 0.05 11 0.5 11.28 (22.7%)
5% Yield On BMY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 25 58.00 0.03 4 0.8 8.28 (16.7%)
Feb 1 58.00 0.10 11 0.9 8.28 (16.7%)
10% Yield On BMY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 25 57.00 0.10 4 2.5 7.28 (14.6%)
Feb 1 57.00 0.16 11 1.5 7.28 (14.6%)

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