BNS Dividend Type Payments

Bank Nova Scotia Halifax Pfd 3 Ordinary Shares dividend

Although BNS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bank Nova Scotia Halifax Pfd 3 Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:50 PM ET):

Bank Nova Scotia Halifax Pfd 3 Ordinary Shares (BNS)
Bid Ask Last Change Volume P/E Market Cap
46.58 46.59 46.58 -0.04 468K - 56B

BNS Dividend-Like Income Using Covered Calls

With BNS at 46.58, 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% 1.40 0.4
5% 2.33 0.6
10% 4.66 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 BNS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 50.00 0.45 65 0.7 3.41 (7.3%)
Sep 20 50.00 1.10 156 0.7 3.41 (7.3%)
5% Yield On BNS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 50.00 0.45 65 0.7 3.41 (7.3%)
Sep 20 50.00 1.10 156 0.7 3.41 (7.3%)

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