BGS Dividend Type Payments

B&G Foods, Inc. B&G Foods, Inc. dividend

Although BGS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on B&G Foods, Inc. B&G Foods, Inc. 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):

B&G Foods, Inc. B&G Foods, Inc. (BGS)
Bid Ask Last Change Volume P/E Market Cap
4.44 4.53 4.47 +0.03 2.0M - 0.4B

BGS Dividend-Like Income Using Covered Calls

With BGS at 4.47, 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% 0.13 0.0
5% 0.22 0.1
10% 0.45 0.1

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 BGS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 5.00 0.20 57 0.4 0.47 (10.5%)
Nov 21 5.00 0.10 29 0.3 0.47 (10.5%)
5% Yield On BGS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 5.00 0.20 57 0.4 0.47 (10.5%)
Nov 21 5.00 0.10 29 0.3 0.47 (10.5%)
10% Yield On BGS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 5.00 0.20 57 0.4 0.47 (10.5%)
Nov 21 5.00 0.10 29 0.3 0.47 (10.5%)

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