BEPC Dividend
Although BEPC has a dividend of 0.37 with an ex-dividend date of Nov 28, you can sell covered calls on Brookfield Renewable Corporation Class A Subordinate Voting Shares 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):
| Brookfield Renewable Corporation Class A Subordinate Voting Shares (BEPC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 43.06 |
44.72 |
44.43 |
+0.03 |
1.9M |
- |
7.6B |
BEPC Dividend-Like Income Using Covered Calls
With BEPC at 44.43, 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% |
1.33 |
0.4 |
| 5% |
2.22 |
0.6 |
| 10% |
4.44 |
1.2 |
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 BEPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
45.00 |
0.95 |
43 |
2.2 |
0.28 (0.6%) |
| Nov 21 |
45.00 |
0.85 |
15 |
5.7 |
0.28 (0.6%) |
| 5% Yield On BEPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
45.00 |
0.95 |
43 |
2.2 |
0.28 (0.6%) |
| Nov 21 |
45.00 |
0.85 |
15 |
5.7 |
0.28 (0.6%) |
| 10% Yield On BEPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
45.00 |
0.95 |
43 |
2.2 |
0.28 (0.6%) |
| Nov 21 |
45.00 |
0.85 |
15 |
5.7 |
0.28 (0.6%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
