BPI Dividend Type Payments

BRIDGEPOINT EDUCATION dividend

Although BPI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BRIDGEPOINT EDUCATION to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:00 PM ET):

BRIDGEPOINT EDUCATION (BPI)
Bid Ask Last Change Volume P/E Market Cap
13.10 13.16 13.12 +0.09 95K 22 0.4B

BPI Dividend-Like Income Using Covered Calls

With BPI at 13.12, 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% 0.39 0.1
5% 0.66 0.2
10% 1.31 0.4

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 BPI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 15.00 0.10 39 0.3 1.84 (14.0%)
Nov 16 17.00 0.20 95 0.2 3.84 (29.3%)
5% Yield On BPI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 15.00 0.10 39 0.3 1.84 (14.0%)
Nov 16 17.00 0.20 95 0.2 3.84 (29.3%)
10% Yield On BPI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 14.00 0.30 39 0.8 0.84 (6.4%)
Nov 16 16.00 0.35 95 0.4 2.84 (21.6%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
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Want more examples? BPFH Dividend | BPL Dividend