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
6.40 6.56 6.48 -0.04 1.3M - 0.5B

BGS Dividend-Like Income Using Covered Calls

With BGS at 6.48, 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% 0.19 0.1
5% 0.32 0.1
10% 0.65 0.2

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
Aug 15 7.00 0.50 197 0.3 0.44 (6.8%)
May 16 7.00 0.35 106 0.3 0.44 (6.8%)
5% Yield On BGS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 7.00 0.50 197 0.3 0.44 (6.8%)
May 16 7.00 0.35 106 0.3 0.44 (6.8%)
10% Yield On BGS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 7.00 0.50 197 0.3 0.44 (6.8%)
May 16 7.00 0.35 106 0.3 0.44 (6.8%)

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