BHR Dividend
Although BHR has a dividend of 0.05 with an ex-dividend date of Dec 31, you can sell covered calls on Braemar Hotels & Resorts Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:45 PM ET):
| Braemar Hotels & Resorts Inc. (BHR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 3.52 | 3.53 | 3.52 | +0.08 | 460K | - | 0.2B |
BHR Dividend-Like Income Using Covered Calls
With BHR at 3.52, 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% | 0.11 | 0.0 |
| 5% | 0.18 | 0.0 |
| 10% | 0.35 | 0.1 |
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:
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | IWM dividend | 1. | PRMW dividend | |
| 2. | NVDA dividend | 7. | EEM dividend | 2. | GRPN dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | HNST dividend | |
| 4. | SLV dividend | 9. | EWZ dividend | 4. | AAP dividend | |
| 5. | TSLA dividend | 10. | SMCI dividend | 5. | RKT dividend | |
Want more examples? BHP Dividend | BHVN Dividend
