BSM Dividend
Although BSM has a dividend of 0.38 with an ex-dividend date of May 9, you can sell covered calls on Black Stone Minerals, L.P. Common units representing limited partner int 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):
| Black Stone Minerals, L.P. Common units representing limited partner int (BSM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 15.25 | 15.88 | 15.36 | -0.36 | 1.3M | 8.4 | 3.3B |
BSM Dividend-Like Income Using Covered Calls
With BSM at 15.36, 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% | 0.46 | 0.1 |
| 5% | 0.77 | 0.2 |
| 10% | 1.54 | 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 BSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 17.50 | 0.05 | 30 | 0.2 | 1.62 (10.5%) | |
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| Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | TLT dividend | 1. | VNDA dividend | |
| 2. | IWM dividend | 7. | AAPL dividend | 2. | CVNA dividend | |
| 3. | QQQ dividend | 8. | FXI dividend | 3. | DJT dividend | |
| 4. | TSLA dividend | 9. | HYG dividend | 4. | MPW dividend | |
| 5. | SLV dividend | 10. | NVDA dividend | 5. | UPST dividend | |
Want more examples? BSIG Dividend | BSR Dividend
