BOOM Dividend Type Payments

DMC GLOBAL INC COMMON dividend

Although BOOM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DMC GLOBAL INC COMMON 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):

DMC GLOBAL INC COMMON (BOOM)
Bid Ask Last Change Volume P/E Market Cap
42.65 44.00 42.80 -0.60 72K - 0.6B

BOOM Dividend-Like Income Using Covered Calls

With BOOM at 42.80, 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% 1.28 0.4
5% 2.14 0.6
10% 4.28 1.2

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 BOOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 45.00 0.10 5 2.0 1.00 (2.3%)
Sep 21 50.00 0.25 40 0.6 6.00 (14.0%)
5% Yield On BOOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 45.00 0.10 5 2.0 1.00 (2.3%)
Sep 21 50.00 0.25 40 0.6 6.00 (14.0%)
10% Yield On BOOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 45.00 0.10 5 2.0 1.00 (2.3%)
Sep 21 45.00 1.15 40 2.9 1.00 (2.3%)

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Want more examples? BOND Dividend | BOON Dividend