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 Tue 4:16 PM ET):
| Babcock & Wilcox Enterprises, Inc (BW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 0.36 | 0.38 | 0.36 | -0.05 | 1.1M | - | 0.1B |
BW Dividend-Like Income Using Covered Calls
With BW at 0.36, 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% | 0.02 | 0.0 |
| 10% | 0.04 | 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 Jul 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | USO dividend | 1. | BYND dividend | |
| 2. | SPX dividend | 7. | OIH dividend | 2. | BB dividend | |
| 3. | EEM dividend | 8. | QCOM dividend | 3. | ITCI dividend | |
| 4. | QQQ dividend | 9. | FXI dividend | 4. | KPTI dividend | |
| 5. | IWM dividend | 10. | AAPL dividend | 5. | OSTK dividend | |
Want more examples? BVX Dividend | BWA Dividend
