BR Dividend

BROADRIDGE dividend

Although BR has a dividend of 0.49 with an ex-dividend date of Sep 17, you can sell covered calls on BROADRIDGE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

BROADRIDGE (BR)
Bid Ask Last Change Volume P/E Market Cap
120.50 132.31 132.31 +2.45 847K 36 15B

BR Dividend-Like Income Using Covered Calls

With BR at 132.31, 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% 3.97 1.1
5% 6.62 1.8
10% 13.23 3.6

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 BR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 140.00 0.45 37 1.2 7.69 (5.8%)
Dec 21 145.00 1.95 128 1.5 12.69 (9.6%)
5% Yield On BR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 135.00 1.65 37 4.5 2.69 (2.0%)
Dec 21 140.00 3.20 128 2.5 7.69 (5.8%)
10% Yield On BR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 135.00 1.65 37 4.5 2.69 (2.0%)
Dec 21 135.00 5.10 128 4.0 2.69 (2.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.AMAT dividend
2.SPY dividend 7.GLD dividend   2.NVDA dividend
3.SPX dividend 8.IWM dividend   3.UVXY dividend
4.QQQ dividend 9.FB dividend   4.DE dividend
5.XLF dividend 10.GDX dividend   5.AKRX dividend

Want more examples? BPY Dividend | BRC Dividend