BKH Dividend
Although BKH has a dividend of 0.68 with an ex-dividend date of May 16, you can sell covered calls on Black Hills Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Black Hills Corporation (BKH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 60.33 | 62.00 | 61.04 | -0.24 | 232K | 16 | 4.4B |
BKH Dividend-Like Income Using Covered Calls
With BKH at 61.04, 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% | 1.83 | 0.5 |
| 5% | 3.05 | 0.8 |
| 10% | 6.10 | 1.7 |
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:
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | APP dividend | |
| 2. | SPY dividend | 7. | FXI dividend | 2. | IONQ dividend | |
| 3. | TLT dividend | 8. | TSLA dividend | 3. | WOLF dividend | |
| 4. | SLV dividend | 9. | GLD dividend | 4. | HIMS dividend | |
| 5. | QQQ dividend | 10. | SNAP dividend | 5. | EOSE dividend | |
Want more examples? BKF Dividend | BKHY Dividend
