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 4:16 PM ET):
Babcock & Wilcox Enterprises, Inc. (BW) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
1.00 | 1.05 | 1.04 | 0.00 | 490K | - | 0.1B |
BW Dividend-Like Income Using Covered Calls
With BW at 1.04, 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 | |
Sep 19 | 1.50 | 0.05 | 54 | 0.1 | 0.45 (43.3%) | |
Nov 21 | 2.00 | 0.05 | 117 | 0.0 | 0.95 (91.3%) |
5% Yield On BW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 19 | 1.50 | 0.05 | 54 | 0.1 | 0.45 (43.3%) | |
Nov 21 | 2.00 | 0.05 | 117 | 0.0 | 0.95 (91.3%) |
10% Yield On BW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 19 | 1.50 | 0.05 | 54 | 0.1 | 0.45 (43.3%) | |
Nov 21 | 2.00 | 0.05 | 117 | 0.0 | 0.95 (91.3%) |
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Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SLV dividend | 6. | IBIT dividend | 1. | EOSE dividend | |
2. | NVDA dividend | 7. | TSLA dividend | 2. | CVNA dividend | |
3. | GLD dividend | 8. | AMZN dividend | 3. | NET dividend | |
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Want more examples? BVN Dividend | BWA Dividend