BRO Dividend

Brown & Brown, Inc. dividend

Although BRO has a dividend of 0.15 with an ex-dividend date of May 12, you can sell covered calls on Brown & Brown, Inc. 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):

Brown & Brown, Inc. (BRO)
Bid Ask Last Change Volume P/E Market Cap
108.19 112.98 110.40 -0.17 1.5M 31 32B

BRO Dividend-Like Income Using Covered Calls

With BRO at 110.40, 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% 3.31 0.9
5% 5.52 1.5
10% 11.04 3.0

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 BRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 115.00 0.30 12 2.5 2.02 (1.8%)
Sep 19 115.00 4.90 138 3.6 2.02 (1.8%)
5% Yield On BRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 115.00 0.30 12 2.5 2.02 (1.8%)
Sep 19 115.00 4.90 138 3.6 2.02 (1.8%)
10% Yield On BRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 115.00 4.90 138 3.6 2.02 (1.8%)
Dec 19 115.00 7.50 229 3.3 2.02 (1.8%)

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

 
 
Top 10 Open Interest For May 16 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.APP dividend
2.SPY dividend 7.FXI dividend   2.IONQ dividend
3.TLT dividend 8.TSLA dividend   3.WOLF dividend
4.SLV dividend 9.GLD dividend   4.HIMS dividend
5.QQQ dividend 10.SNAP dividend   5.EOSE dividend

Want more examples? BRKR Dividend | BRX Dividend