BURL Dividend Type Payments

BURLINGTON STORES INC dividend

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

BURLINGTON STORES INC (BURL)
Bid Ask Last Change Volume P/E Market Cap
147.74 163.25 158.65 -2.75 785K 25 11B

BURL Dividend-Like Income Using Covered Calls

With BURL at 158.65, 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% 4.76 1.3
5% 7.93 2.2
10% 15.87 4.3

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 BURL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 167.50 0.25 10 2.5 4.25 (2.7%)
Nov 2 170.00 0.40 17 2.4 6.75 (4.3%)
5% Yield On BURL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 167.50 0.25 10 2.5 4.25 (2.7%)
Nov 2 170.00 0.40 17 2.4 6.75 (4.3%)
10% Yield On BURL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 165.00 0.60 10 6.0 1.75 (1.1%)
Nov 2 165.00 1.20 17 7.1 1.75 (1.1%)

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