BMY Dividend Type Payments

BRISTOL-MYERS SQUIBB dividend

Although BMY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BRISTOL-MYERS SQUIBB to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:20 PM ET):

BRISTOL-MYERS SQUIBB (BMY)
Bid Ask Last Change Volume P/E Market Cap
53.31 53.32 53.31 -0.08 3.2M 60 86B

BMY Dividend-Like Income Using Covered Calls

With BMY at 53.31, 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% 1.60 0.4
5% 2.67 0.7
10% 5.33 1.5

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
Nov 16 56.00 0.03 5 0.6 2.68 (5.0%)
Nov 23 56.50 0.07 12 0.6 3.18 (6.0%)
5% Yield On BMY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.50 0.06 5 1.2 2.18 (4.1%)
Nov 23 56.00 0.11 12 0.9 2.68 (5.0%)
10% Yield On BMY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.11 5 2.2 1.68 (3.2%)
Nov 23 55.00 0.25 12 2.1 1.68 (3.2%)

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