BEPC Dividend
Although BEPC has a dividend of 0.37 with an ex-dividend date of Feb 28, you can sell covered calls on Brookfield Renewable Corporation Class A Subordinate Voting Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Brookfield Renewable Corporation Class A Subordinate Voting Shares (BEPC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 27.55 |
30.15 |
29.00 |
-0.36 |
735K |
- |
5.1B |
BEPC Dividend-Like Income Using Covered Calls
With BEPC at 29.00, 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% |
0.87 |
0.2 |
| 5% |
1.45 |
0.4 |
| 10% |
2.90 |
0.8 |
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 BEPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
30.00 |
1.05 |
56 |
1.6 |
0.00 (0.0%) |
| Sep 19 |
30.00 |
1.50 |
211 |
0.6 |
0.00 (0.0%) |
| 5% Yield On BEPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
30.00 |
1.05 |
56 |
1.6 |
0.00 (0.0%) |
| Sep 19 |
30.00 |
1.50 |
211 |
0.6 |
0.00 (0.0%) |
| 10% Yield On BEPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
30.00 |
1.05 |
56 |
1.6 |
0.00 (0.0%) |
| Jun 20 |
30.00 |
1.75 |
120 |
1.3 |
0.00 (0.0%) |
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