BW Dividend Type Payments

Babcock & Wilcox Enterprises, Inc dividend

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 Mon 10:00 AM ET):

Babcock & Wilcox Enterprises, Inc (BW)
Bid Ask Last Change Volume P/E Market Cap
0.84 0.85 0.86 +0.02 11K - 0.0B

BW Dividend-Like Income Using Covered Calls

With BW at 0.86, 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% 0.03 0.0
5% 0.04 0.0
10% 0.09 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:

3% Yield On BW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 2.50 0.05 159 0.0 1.65 (191.9%)
5% Yield On BW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 2.50 0.05 159 0.0 1.65 (191.9%)
10% Yield On BW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 2.50 0.05 159 0.0 1.65 (191.9%)

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