BBW Dividend Type Payments

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 Wed 4:16 PM ET):

Build-A-Bear Workshop, Inc. (BBW)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
40.50	44.00	41.08	+1.01	269K	11	0.5B

BBW Dividend-Like Income Using Covered Calls

With BBW at 41.08, 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%	1.23	0.3
5%	2.05	0.6
10%	4.11	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
Sep 19	45.00	4.90	241	2.0	1.00 (2.4%)
Jun 20	45.00	3.70	150	2.5	1.00 (2.4%)

5% Yield On BBW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	45.00	4.90	241	2.0	1.00 (2.4%)
Jun 20	45.00	3.70	150	2.5	1.00 (2.4%)

10% Yield On BBW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	45.00	4.90	241	2.0	1.00 (2.4%)
Jun 20	45.00	3.70	150	2.5	1.00 (2.4%)

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