BBW Dividend Type Payments

Build-A-Bear Workshop, Inc. dividend

Although BBW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Build-A-Bear Workshop, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:30 PM ET):

Build-A-Bear Workshop, Inc. (BBW)
Bid Ask Last Change Volume P/E Market Cap
54.13 54.35 54.23 -1.20 126K 13 0.7B

BBW Dividend-Like Income Using Covered Calls

With BBW at 54.23, 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% 1.63 0.4
5% 2.71 0.7
10% 5.42 1.5

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 BBW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 20 55.00 1.15 12 9.6 0.65 (1.2%)
Mar 20 55.00 3.90 40 9.8 0.65 (1.2%)
5% Yield On BBW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 20 55.00 1.15 12 9.6 0.65 (1.2%)
Mar 20 55.00 3.90 40 9.8 0.65 (1.2%)
10% Yield On BBW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 20 55.00 1.15 12 9.6 0.65 (1.2%)
Mar 20 55.00 3.90 40 9.8 0.65 (1.2%)

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