BBBY Dividend Type Payments

Bed Bath & Beyond, Inc. dividend

Although BBBY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bed Bath & Beyond, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Bed Bath & Beyond, Inc. (BBBY)
Bid Ask Last Change Volume P/E Market Cap
6.10 6.20 6.20 -0.26 1.7M - 0.4B

BBBY Dividend-Like Income Using Covered Calls

With BBBY at 6.20, 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% 0.19 0.1
5% 0.31 0.1
10% 0.62 0.2

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 BBBY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 7.50 0.15 31 0.5 1.30 (21.0%)
Mar 20 10.00 0.05 94 0.1 3.80 (61.3%)
5% Yield On BBBY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 7.50 0.15 31 0.5 1.30 (21.0%)
Mar 20 12.50 0.10 94 0.1 6.30 (101.6%)
10% Yield On BBBY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 7.50 0.15 31 0.5 1.30 (21.0%)
Mar 20 7.50 0.65 94 0.7 1.30 (21.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Dec 19 Expiration     Top 5 High Yield
1.NVDA dividend 6.TSLA dividend   1.OMER dividend
2.SPY dividend 7.NFLX dividend   2.TMC dividend
3.IBIT dividend 8.SLV dividend   3.TLRY dividend
4.QQQ dividend 9.XLF dividend   4.BMNR dividend
5.TLT dividend 10.AMZN dividend   5.ALT dividend

Want more examples? BBAR Dividend | BBC Dividend