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 Thu 4:16 PM ET):
Babcock & Wilcox Enterprises, Inc. (BW) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
0.99 | 1.01 | 1.00 | -0.06 | 1.2M | - | 0.1B |
BW Dividend-Like Income Using Covered Calls
With BW at 1.00, here's a table showing how big the annual "dividend" (i.e. 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% | 0.05 | 0.0 |
10% | 0.10 | 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 15 | 2.50 | 0.05 | 205 | 0.0 | 1.49 (149.0%) | |
Jan 17 | 1.50 | 0.15 | 268 | 0.1 | 0.49 (49.0%) |
5% Yield On BW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 2.50 | 0.05 | 205 | 0.0 | 1.49 (149.0%) | |
Jan 17 | 1.50 | 0.15 | 268 | 0.1 | 0.49 (49.0%) |
10% Yield On BW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jan 17 | 1.50 | 0.15 | 268 | 0.1 | 0.49 (49.0%) |
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. | QQQ dividend | 6. | EEM dividend | 1. | WOLF dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | FSLY dividend | |
3. | IWM dividend | 8. | SLV dividend | 3. | INTC dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | GRPN dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | PENN dividend |
Want more examples? BVN Dividend | BWA Dividend