BKH Dividend Type Payments
Although BKH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Black Hills Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 2:35 PM ET):
| Black Hills Corporation (BKH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 60.27 | 60.37 | 60.30 | +0.03 | 269K | 15 | 4.3B |
BKH Dividend-Like Income Using Covered Calls
With BKH at 60.30, 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% | 1.81 | 0.5 |
| 5% | 3.02 | 0.8 |
| 10% | 6.03 | 1.7 |
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 BKH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 65.00 | 1.05 | 170 | 0.6 | 4.63 (7.7%) | |
| May 16 | 65.00 | 0.40 | 79 | 0.5 | 4.63 (7.7%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | SOUN dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | RKLB dividend | |
| 3. | FXI dividend | 8. | INTC dividend | 3. | BBAI dividend | |
| 4. | IWM dividend | 9. | SLV dividend | 4. | CIFR dividend | |
| 5. | EEM dividend | 10. | TLT dividend | 5. | WOLF dividend | |
Want more examples? BKF Dividend | BKHY Dividend
