BBW Dividend Type Payments

Build-A-Bear Workshop, Inc. dividend

Although BBW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Build-A-Bear Workshop, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 2:30 PM ET):

Build-A-Bear Workshop, Inc. (BBW)
Bid Ask Last Change Volume P/E Market Cap
39.99 40.16 40.12 -0.63 63K 11 0.5B

BBW Dividend-Like Income Using Covered Calls

With BBW at 40.12, 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% 1.20 0.3
5% 2.01 0.5
10% 4.01 1.1

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 BBW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 40.00 3.40 50 6.5 0.00 (0.0%)
Sep 19 40.00 6.40 205 3.0 0.00 (0.0%)
5% Yield On BBW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 40.00 3.40 50 6.5 0.00 (0.0%)
Sep 19 40.00 6.40 205 3.0 0.00 (0.0%)
10% Yield On BBW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 40.00 3.40 50 6.5 0.00 (0.0%)
Sep 19 40.00 6.40 205 3.0 0.00 (0.0%)

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