BAM Dividend Type Payments
Although BAM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Brookfield Asset Management Inc Class A Limited Voting Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:40 AM ET):
| Brookfield Asset Management Inc Class A Limited Voting Shares (BAM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 47.80 | 47.83 | 47.81 | -3.00 | 857K | - | 83B |
BAM Dividend-Like Income Using Covered Calls
With BAM at 47.81, 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% | 1.43 | 0.4 |
| 5% | 2.39 | 0.7 |
| 10% | 4.78 | 1.3 |
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 BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 50.00 | 1.70 | 44 | 3.9 | 2.17 (4.5%) | |
| Apr 17 | 50.00 | 0.70 | 15 | 4.7 | 2.17 (4.5%) | |
| 5% Yield On BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 50.00 | 1.70 | 44 | 3.9 | 2.17 (4.5%) | |
| Apr 17 | 50.00 | 0.70 | 15 | 4.7 | 2.17 (4.5%) | |
| 10% Yield On BAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 50.00 | 1.70 | 44 | 3.9 | 2.17 (4.5%) | |
| Apr 17 | 50.00 | 0.70 | 15 | 4.7 | 2.17 (4.5%) | |
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| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | CORZ dividend | |
| 2. | SPY dividend | 7. | NIO dividend | 2. | IONQ dividend | |
| 3. | SLV dividend | 8. | EEM dividend | 3. | QBTS dividend | |
| 4. | ASHR dividend | 9. | TLT dividend | 4. | CVNA dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | IREN dividend | |
Want more examples? BALT Dividend | BANC Dividend
