NWL Dividend

Newell Brands Inc. dividend

Although NWL has a dividend of 0.07 with an ex-dividend date of Nov 29, you can sell covered calls on Newell Brands 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):

Newell Brands Inc. (NWL)
Bid Ask Last Change Volume P/E Market Cap
8.78 8.90 8.80 -0.16 3.9M - 3.7B

NWL Dividend-Like Income Using Covered Calls

With NWL at 8.80, 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% 0.26 0.1
5% 0.44 0.1
10% 0.88 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 NWL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 10.00 0.05 36 0.1 1.10 (12.5%)
Jan 17 10.00 0.15 64 0.2 1.10 (12.5%)
5% Yield On NWL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 10.00 0.05 36 0.1 1.10 (12.5%)
Jan 17 10.00 0.15 64 0.2 1.10 (12.5%)
10% Yield On NWL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 9.00 0.25 36 0.7 0.10 (1.1%)
Jan 17 9.00 0.45 64 0.7 0.10 (1.1%)

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