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 Fri 4:16 PM ET):

BABCOCK & WILCOX ENTERPRISES INC (BW)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
0.83	1.15	1.10	-0.08	706K	-	0.2B

BW Dividend-Like Income Using Covered Calls

With BW at 1.10, 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%	0.06	0.0
10%	0.11	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
Feb 15	2.50	0.05	120	0.0	1.35 (122.7%)
May 17	2.50	0.10	211	0.0	1.35 (122.7%)

5% Yield On BW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 15	2.50	0.05	120	0.0	1.35 (122.7%)
May 17	2.50	0.10	211	0.0	1.35 (122.7%)

10% Yield On BW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 15	2.50	0.05	120	0.0	1.35 (122.7%)
May 17	2.50	0.10	211	0.0	1.35 (122.7%)

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Want more examples? BVX Dividend | BWA Dividend