BAM Dividend
Although BAM has a dividend of 0.44 with an ex-dividend date of Feb 28, you can sell covered calls on Brookfield Asset Management Inc Class A Limited Voting Shares 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):
| Brookfield Asset Management Inc Class A Limited Voting Shares (BAM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 57.50 | 61.84 | 58.57 | -1.73 | 2.4M | - | 91B |
BAM Dividend-Like Income Using Covered Calls
With BAM at 58.57, 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% | 1.76 | 0.5 |
| 5% | 2.93 | 0.8 |
| 10% | 5.86 | 1.6 |
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 BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 62.50 | 0.95 | 56 | 1.7 | 0.66 (1.1%) | |
| Oct 17 | 62.50 | 3.50 | 239 | 1.5 | 0.66 (1.1%) | |
| 5% Yield On BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 62.50 | 0.95 | 56 | 1.7 | 0.66 (1.1%) | |
| Oct 17 | 62.50 | 3.50 | 239 | 1.5 | 0.66 (1.1%) | |
| 10% Yield On BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 62.50 | 0.95 | 56 | 1.7 | 0.66 (1.1%) | |
| Jul 18 | 62.50 | 2.65 | 148 | 1.8 | 0.66 (1.1%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | LUNR dividend | |
| 2. | FXI dividend | 7. | INTC dividend | 2. | HIMS dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | RGTI dividend | |
| 4. | EEM dividend | 9. | QQQ dividend | 4. | SOUN dividend | |
| 5. | IWM dividend | 10. | HYG dividend | 5. | WOLF dividend | |
Want more examples? BALY Dividend | BANC Dividend
