BK Dividend Type Payments
Although BK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on The Bank of New York Mellon Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:55 PM ET):
| The Bank of New York Mellon Corporation (BK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 84.77 | 84.78 | 84.77 | -0.42 | 2.2M | 19 | 62B |
BK Dividend-Like Income Using Covered Calls
With BK at 84.77, 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% | 2.54 | 0.7 |
| 5% | 4.24 | 1.2 |
| 10% | 8.48 | 2.3 |
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 BK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 85.00 | 0.50 | 4 | 12.5 | 0.22 (0.3%) | |
| Mar 7 | 85.00 | 1.75 | 32 | 5.5 | 0.22 (0.3%) | |
| 5% Yield On BK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 85.00 | 0.50 | 4 | 12.5 | 0.22 (0.3%) | |
| Mar 7 | 85.00 | 1.75 | 32 | 5.5 | 0.22 (0.3%) | |
| 10% Yield On BK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 85.00 | 0.50 | 4 | 12.5 | 0.22 (0.3%) | |
| Mar 7 | 85.00 | 1.75 | 32 | 5.5 | 0.22 (0.3%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | FXI dividend | 1. | LUMN dividend | |
| 2. | TLT dividend | 7. | SLV dividend | 2. | AFRM dividend | |
| 3. | SPY dividend | 8. | QQQ dividend | 3. | SYM dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | BILL dividend | |
| 5. | TSLA dividend | 10. | GLD dividend | 5. | ENPH dividend | |
Want more examples? BJRI Dividend | BKAG Dividend
