BSM Dividend Type Payments

Although BSM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BLACK STONE MINERALS LP 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):

BLACK STONE MINERALS LP (BSM)
Bid Ask Last Change Volume P/E Market Cap
17.00 17.34 17.33 -0.29 66K 35 3.5B

BSM Dividend-Like Income Using Covered Calls

With BSM at 17.33, 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% 0.52 0.1
5% 0.87 0.2
10% 1.73 0.5

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
Oct 19 17.50 0.05 5 1.0 0.16 (0.9%)
Nov 16 17.50 0.35 33 1.1 0.16 (0.9%)
5% Yield On BSM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 17.50 0.05 5 1.0 0.16 (0.9%)
Nov 16 17.50 0.35 33 1.1 0.16 (0.9%)
10% Yield On BSM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 17.50 0.05 5 1.0 0.16 (0.9%)
Nov 16 17.50 0.35 33 1.1 0.16 (0.9%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.MU dividend   1.CRON dividend
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3.EEM dividend 8.BAC dividend   3.NIO dividend
4.QQQ dividend 9.AMD dividend   4.NFLX dividend
5.PBR dividend 10.XLF dividend   5.AMRN dividend

Want more examples? BSJP Dividend | BSMX Dividend