BG Dividend Type Payments

Bunge Limited Common Shares dividend

Although BG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bunge Limited Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:10 PM ET):

Bunge Limited Common Shares (BG)
Bid Ask Last Change Volume P/E Market Cap
91.66 91.70 91.68 +1.76 810K 12 13B

BG Dividend-Like Income Using Covered Calls

With BG at 91.68, 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% 2.75 0.8
5% 4.58 1.3
10% 9.17 2.5

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 BG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 100.00 0.35 33 1.1 8.30 (9.1%)
Jan 17 100.00 0.90 61 1.5 8.30 (9.1%)
5% Yield On BG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 92.50 2.40 33 7.3 0.80 (0.9%)
Jan 17 100.00 0.90 61 1.5 8.30 (9.1%)
10% Yield On BG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 92.50 2.40 33 7.3 0.80 (0.9%)
Jan 17 92.50 3.50 61 5.7 0.80 (0.9%)

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Want more examples? BFOR Dividend | BGC Dividend