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 Mon 2:00 PM ET):
| Babcock & Wilcox Enterprises, Inc (BW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 0.28 | 0.29 | 0.29 | 0.00 | 746K | - | 0.0B |
BW Dividend-Like Income Using Covered Calls
With BW at 0.29, 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% | 0.01 | 0.0 |
| 5% | 0.01 | 0.0 |
| 10% | 0.03 | 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:
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | QQQ dividend | 1. | SNAP dividend | |
| 2. | COTY dividend | 7. | BAC dividend | 2. | TWTR dividend | |
| 3. | EEM dividend | 8. | EWZ dividend | 3. | BCRX dividend | |
| 4. | FXI dividend | 9. | XOP dividend | 4. | TSLA dividend | |
| 5. | SPX dividend | 10. | XLF dividend | 5. | F dividend | |
Want more examples? BVX Dividend | BWA Dividend
