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 Wed 12:10 PM ET):

ANHEUSER-BUSCH INBEV (BUD)
Bid Ask Last Change Volume P/E Market Cap
84.12 84.14 84.14 -1.29 615K 21 167B

BUD Dividend-Like Income Using Covered Calls

With BUD at 84.14, 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% 2.52 0.7
5% 4.21 1.2
10% 8.41 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 BUD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 86.00 0.07 3 2.3 1.86 (2.2%)
Oct 26 93.50 0.07 10 0.7 9.36 (11.1%)
5% Yield On BUD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 86.00 0.07 3 2.3 1.86 (2.2%)
Oct 26 92.00 0.12 10 1.2 7.86 (9.3%)
10% Yield On BUD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 86.00 0.07 3 2.3 1.86 (2.2%)
Oct 26 90.50 0.24 10 2.4 6.36 (7.6%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.GBT dividend
2.SPX dividend 7.MU dividend   2.LLNW dividend
3.QQQ dividend 8.FXI dividend   3.CLVS dividend
4.EEM dividend 9.IWM dividend   4.UVXY dividend
5.BAC dividend 10.AMD dividend   5.CRON dividend

Want more examples? BTX Dividend | BUNL Dividend