BW Dividend Type Payments
Although BW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Babcock & Wilcox Enterprises, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Babcock & Wilcox Enterprises, Inc (BW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 0.66 | 0.68 | 0.67 | +0.03 | 491K | - | 0.1B |
BW Dividend-Like Income Using Covered Calls
With BW at 0.67, 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% | 0.02 | 0.0 |
| 5% | 0.03 | 0.0 |
| 10% | 0.07 | 0.0 |
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:
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| Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | Z dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | FSLR dividend | |
| 3. | SPY dividend | 8. | LLY dividend | 3. | ROKU dividend | |
| 4. | QQQ dividend | 9. | BAC dividend | 4. | IQ dividend | |
| 5. | FXI dividend | 10. | GLD dividend | 5. | DBX dividend | |
Want more examples? BVX Dividend | BWA Dividend
