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 Tue 11:30 AM ET):

BABCOCK & WILCOX ENTERPRISES INC (BW)
Bid Ask Last Change Volume P/E Market Cap
1.45 1.46 1.45 -0.12 431K - 0.3B

BW Dividend-Like Income Using Covered Calls

With BW at 1.45, 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% 0.04 0.0
5% 0.07 0.0
10% 0.15 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
Nov 16 2.50 0.05 95 0.1 1.04 (71.7%)
Feb 15 2.50 0.10 186 0.1 1.04 (71.7%)
5% Yield On BW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 2.50 0.05 95 0.1 1.04 (71.7%)
Feb 15 2.50 0.10 186 0.1 1.04 (71.7%)
10% Yield On BW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 2.50 0.05 95 0.1 1.04 (71.7%)
Feb 15 2.50 0.10 186 0.1 1.04 (71.7%)

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