BCI Dividend Type Payments
Although BCI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on abrdn Bloomberg All Commodity Strategy K-1 Free ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 21.08 | 22.14 | 21.21 | +0.13 | 1.4M | - | 0.0B |
BCI Dividend-Like Income Using Covered Calls
With BCI at 21.21, 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% | 0.64 | 0.2 |
| 5% | 1.06 | 0.3 |
| 10% | 2.12 | 0.6 |
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 BCI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 23.00 | 0.15 | 40 | 0.4 | 0.86 (4.1%) | |
| May 15 | 24.00 | 0.30 | 96 | 0.3 | 1.86 (8.8%) | |
| 5% Yield On BCI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 23.00 | 0.15 | 40 | 0.4 | 0.86 (4.1%) | |
| May 15 | 24.00 | 0.30 | 96 | 0.3 | 1.86 (8.8%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | NVDA dividend | 7. | SPY dividend | 2. | UPWK dividend | |
| 3. | KWEB dividend | 8. | EWZ dividend | 3. | PINS dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | NET dividend | |
| 5. | GLD dividend | 10. | CORZ dividend | 5. | APLD dividend | |
Want more examples? BCE Dividend | BCO Dividend
