BSX Dividend Type Payments

BOSTON SCIENTIFIC dividend

Although BSX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BOSTON SCIENTIFIC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

BOSTON SCIENTIFIC (BSX)
Bid Ask Last Change Volume P/E Market Cap
34.00 34.80 34.49 -0.08 5.9M 91 48B

BSX Dividend-Like Income Using Covered Calls

With BSX at 34.49, 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% 1.03 0.3
5% 1.72 0.5
10% 3.45 0.9

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 BSX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 36.00 0.10 4 2.5 1.20 (3.5%)
Aug 31 37.00 0.04 11 0.4 2.20 (6.4%)
5% Yield On BSX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 36.00 0.10 4 2.5 1.20 (3.5%)
Aug 31 36.00 0.08 11 0.7 1.20 (3.5%)
10% Yield On BSX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 36.00 0.10 4 2.5 1.20 (3.5%)
Aug 31 35.50 0.15 11 1.4 0.70 (2.0%)

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