CWK Dividend Type Payments
Although CWK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cushman & Wakefield plc Ordinary Shares 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):
| Cushman & Wakefield plc Ordinary Shares (CWK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 11.33 |
12.21 |
11.80 |
-0.39 |
1.9M |
33 |
2.8B |
CWK Dividend-Like Income Using Covered Calls
With CWK at 11.80, 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% |
0.35 |
0.1 |
| 5% |
0.59 |
0.2 |
| 10% |
1.18 |
0.3 |
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 CWK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
12.50 |
1.40 |
218 |
0.6 |
0.29 (2.5%) |
| May 16 |
12.50 |
0.20 |
127 |
0.2 |
0.29 (2.5%) |
| 5% Yield On CWK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
12.50 |
1.40 |
218 |
0.6 |
0.29 (2.5%) |
| May 16 |
15.00 |
0.30 |
127 |
0.2 |
2.79 (23.6%) |
| 10% Yield On CWK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
12.50 |
1.40 |
218 |
0.6 |
0.29 (2.5%) |
| Oct 17 |
12.50 |
1.55 |
281 |
0.6 |
0.29 (2.5%) |
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