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 Thu 4:16 PM ET):
| Bloom Energy Corporation Class A (BE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 156.70 |
156.98 |
156.51 |
-8.88 |
11.8M |
2067 |
78B |
BE Dividend-Like Income Using Covered Calls
With BE at 156.51, 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% |
4.70 |
1.3 |
| 5% |
7.83 |
2.1 |
| 10% |
15.65 |
4.3 |
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 |
| Feb 6 |
157.50 |
12.15 |
9 |
135.0 |
0.52 (0.3%) |
| Mar 6 |
157.50 |
20.95 |
37 |
56.6 |
0.52 (0.3%) |
| 5% Yield On BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
157.50 |
12.15 |
9 |
135.0 |
0.52 (0.3%) |
| Mar 6 |
157.50 |
20.95 |
37 |
56.6 |
0.52 (0.3%) |
| 10% Yield On BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
157.50 |
12.15 |
9 |
135.0 |
0.52 (0.3%) |
| Mar 6 |
157.50 |
20.95 |
37 |
56.6 |
0.52 (0.3%) |
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