BE Dividend Type Payments
Although BE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bloom Energy Corporation Class A 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):
| Bloom Energy Corporation Class A (BE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 23.01 |
23.43 |
23.46 |
-1.31 |
4.8M |
- |
11B |
BE Dividend-Like Income Using Covered Calls
With BE at 23.46, 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% |
0.70 |
0.2 |
| 5% |
1.17 |
0.3 |
| 10% |
2.35 |
0.6 |
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 BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
23.50 |
0.25 |
3 |
8.3 |
0.07 (0.3%) |
| Dec 27 |
23.50 |
0.10 |
10 |
1.0 |
0.07 (0.3%) |
| 5% Yield On BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
23.50 |
0.25 |
3 |
8.3 |
0.07 (0.3%) |
| Dec 27 |
23.50 |
0.10 |
10 |
1.0 |
0.07 (0.3%) |
| 10% Yield On BE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
23.50 |
0.25 |
3 |
8.3 |
0.07 (0.3%) |
| Dec 27 |
23.50 |
0.10 |
10 |
1.0 |
0.07 (0.3%) |
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