BUD Dividend Type Payments

ANHEUSER-BUSCH INBEV dividend

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

ANHEUSER-BUSCH INBEV (BUD)
Bid Ask Last Change Volume P/E Market Cap
99.35 100.60 99.86 +1.39 1.6M 24 191B

BUD Dividend-Like Income Using Covered Calls

With BUD at 99.86, 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% 3.00 0.8
5% 4.99 1.4
10% 9.99 2.7

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 BUD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 102.00 0.14 8 1.8 1.40 (1.4%)
Aug 31 103.00 0.20 15 1.3 2.40 (2.4%)
5% Yield On BUD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 102.00 0.14 8 1.8 1.40 (1.4%)
Aug 31 102.00 0.38 15 2.5 1.40 (1.4%)
10% Yield On BUD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 101.00 0.34 8 4.3 0.40 (0.4%)
Aug 31 101.00 0.67 15 4.5 0.40 (0.4%)

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Want more examples? BTX Dividend | BUNL Dividend