BAM Dividend
Although BAM has a dividend of 0.44 with an ex-dividend date of Aug 29, 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 2:05 PM ET):
| Brookfield Asset Management Inc Class A Limited Voting Shares (BAM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 61.75 | 61.77 | 61.76 | +0.84 | 663K | - | 98B |
BAM Dividend-Like Income Using Covered Calls
With BAM at 61.76, 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% | 1.85 | 0.5 |
| 5% | 3.09 | 0.8 |
| 10% | 6.18 | 1.7 |
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 | |
| Aug 15 | 62.50 | 0.60 | 8 | 7.5 | 0.73 (1.2%) | |
| Oct 17 | 62.50 | 2.55 | 71 | 3.6 | 0.73 (1.2%) | |
| 5% Yield On BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 62.50 | 0.60 | 8 | 7.5 | 0.73 (1.2%) | |
| Oct 17 | 62.50 | 2.55 | 71 | 3.6 | 0.73 (1.2%) | |
| 10% Yield On BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 62.50 | 0.60 | 8 | 7.5 | 0.73 (1.2%) | |
| Oct 17 | 62.50 | 2.55 | 71 | 3.6 | 0.73 (1.2%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | MBX dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | CAPR dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | SPRY dividend | |
| 4. | IWM dividend | 9. | INTC dividend | 4. | GLBE dividend | |
| 5. | IBIT dividend | 10. | QQQ dividend | 5. | RCAT dividend | |
Want more examples? BALT Dividend | BANC Dividend
