BW Dividend Type Payments

Although BW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Babcock & Wilcox Enterprises, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:20 AM ET):

Babcock & Wilcox Enterprises, Inc. (BW)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
5.06	5.07	5.07	+0.26	683K	-	0.5B

BW Dividend-Like Income Using Covered Calls

With BW at 5.07, 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%	0.15	0.0
5%	0.25	0.1
10%	0.51	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:

3% Yield On BW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	10.00	0.30	148	0.2	4.93 (97.2%)
Jan 16	5.50	0.30	29	1.0	0.43 (8.5%)

5% Yield On BW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	10.00	0.30	148	0.2	4.93 (97.2%)
Jan 16	5.50	0.30	29	1.0	0.43 (8.5%)

10% Yield On BW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	10.00	0.30	148	0.2	4.93 (97.2%)
Jan 16	5.50	0.30	29	1.0	0.43 (8.5%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Jan 16 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	AAPL dividend	1.	OMER dividend
2.	INTC dividend	7.	NIO dividend	2.	LUNR dividend
3.	TLT dividend	8.	GLD dividend	3.	SGML dividend
4.	IBIT dividend	9.	NFLX dividend	4.	ONDS dividend
5.	SLV dividend	10.	ASST dividend	5.	TMC dividend

Want more examples? BVN Dividend | BWA Dividend