BRO Dividend
Although BRO has a dividend of 0.13 with an ex-dividend date of May 3, 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 Thu 4:16 PM ET):
Brown & Brown, Inc. (BRO) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
81.67 | 82.79 | 82.28 | +0.15 | 1.6M | 27 | 23B |
BRO Dividend-Like Income Using Covered Calls
With BRO at 82.28, 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% | 2.47 | 0.7 |
5% | 4.11 | 1.1 |
10% | 8.23 | 2.3 |
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 BRO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 85.00 | 0.35 | 23 | 1.5 | 2.21 (2.7%) | |
Jun 21 | 85.00 | 1.00 | 58 | 1.7 | 2.21 (2.7%) |
5% Yield On BRO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 85.00 | 0.35 | 23 | 1.5 | 2.21 (2.7%) | |
Jun 21 | 85.00 | 1.00 | 58 | 1.7 | 2.21 (2.7%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | QQQ dividend | 6. | EEM dividend | 1. | WOLF dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | FSLY dividend | |
3. | IWM dividend | 8. | SLV dividend | 3. | INTC dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | GRPN dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | MPW dividend |
Want more examples? BRKR Dividend | BRP Dividend