BMY Dividend

Bristol-Myers Squibb Co dividend

Although BMY has a dividend of 0.41 with an ex-dividend date of Jul 3, 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 Mon 4:16 PM ET):

Bristol-Myers Squibb Co (BMY)
Bid Ask Last Change Volume P/E Market Cap
48.10 48.15 48.21 +0.65 9.2M - 78B

BMY Dividend-Like Income Using Covered Calls

With BMY at 48.21, 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% 1.45 0.4
5% 2.41 0.7
10% 4.82 1.3

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
Jun 21 50.00 0.05 5 1.0 1.85 (3.8%)
Jun 28 51.00 0.06 12 0.5 2.85 (5.9%)
5% Yield On BMY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 50.00 0.05 5 1.0 1.85 (3.8%)
Jun 28 50.50 0.10 12 0.8 2.35 (4.9%)
10% Yield On BMY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 49.50 0.08 5 1.6 1.35 (2.8%)
Jun 28 50.00 0.17 12 1.4 1.85 (3.8%)

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