BE Dividend Type Payments
Although BE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bloom Energy Corporation Class A 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):
| Bloom Energy Corporation Class A (BE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 135.22 |
135.50 |
135.21 |
-1.65 |
15.1M |
1711 |
64B |
BE Dividend-Like Income Using Covered Calls
With BE at 135.21, 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% |
4.06 |
1.1 |
| 5% |
6.76 |
1.9 |
| 10% |
13.52 |
3.7 |
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 BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
135.00 |
18.00 |
29 |
60.3 |
0.00 (0.0%) |
| Dec 12 |
135.00 |
21.00 |
36 |
56.9 |
0.00 (0.0%) |
| 5% Yield On BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
135.00 |
18.00 |
29 |
60.3 |
0.00 (0.0%) |
| Dec 12 |
135.00 |
21.00 |
36 |
56.9 |
0.00 (0.0%) |
| 10% Yield On BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
135.00 |
18.00 |
29 |
60.3 |
0.00 (0.0%) |
| Dec 12 |
135.00 |
21.00 |
36 |
56.9 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
