BCC Dividend

Boise Cascade, L.L.C. dividend

Although BCC has a dividend of 0.22 with an ex-dividend date of Sep 2, you can sell covered calls on Boise Cascade, L.L.C. 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):

Boise Cascade, L.L.C. (BCC)
Bid Ask Last Change Volume P/E Market Cap
82.00 91.07 85.99 -0.63 767K 13 3.2B

BCC Dividend-Like Income Using Covered Calls

With BCC at 85.99, 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% 2.58 0.7
5% 4.30 1.2
10% 8.60 2.4

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 BCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 100.00 1.10 64 1.7 8.93 (10.4%)
Sep 19 92.50 1.00 36 2.8 1.43 (1.7%)
5% Yield On BCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 100.00 1.10 64 1.7 8.93 (10.4%)
Sep 19 92.50 1.00 36 2.8 1.43 (1.7%)
10% Yield On BCC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 92.50 2.30 64 3.6 1.43 (1.7%)
Sep 19 92.50 1.00 36 2.8 1.43 (1.7%)

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