BR Dividend Type Payments
Although BR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Broadridge Financial Solutions, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:20 PM ET):
| Broadridge Financial Solutions, Inc. (BR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 236.19 | 236.65 | 236.42 | +1.47 | 132K | 41 | 28B |
BR Dividend-Like Income Using Covered Calls
With BR at 236.42, 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% | 7.09 | 1.9 |
| 5% | 11.82 | 3.2 |
| 10% | 23.64 | 6.5 |
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 BR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 240.00 | 14.30 | 240 | 6.0 | 3.35 (1.4%) | |
| Jun 20 | 240.00 | 10.10 | 149 | 6.8 | 3.35 (1.4%) | |
| 5% Yield On BR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 240.00 | 14.30 | 240 | 6.0 | 3.35 (1.4%) | |
| Jun 20 | 240.00 | 10.10 | 149 | 6.8 | 3.35 (1.4%) | |
| 10% Yield On BR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 240.00 | 10.10 | 149 | 6.8 | 3.35 (1.4%) | |
| Feb 21 | 240.00 | 4.00 | 30 | 13.3 | 3.35 (1.4%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | QUBT dividend | |
| 2. | TLT dividend | 7. | SLV dividend | 2. | SNAP dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | IONQ dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | SMCI dividend | |
| 5. | FXI dividend | 10. | ASHR dividend | 5. | MBLY dividend | |
Want more examples? BPT Dividend | BRAZ Dividend
