WES Dividend Type Payments
Although WES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Western Midstream Partners, LP Common Units Representing Limited Partner to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Western Midstream Partners, LP Common Units Representing Limited Partner (WES) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 39.60 | 40.25 | 40.44 | +0.35 | 993K | 10 | 15B |
WES Dividend-Like Income Using Covered Calls
With WES at 40.44, 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% | 1.21 | 0.3 |
| 5% | 2.02 | 0.6 |
| 10% | 4.04 | 1.1 |
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 WES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 41.00 | 1.90 | 171 | 1.1 | 0.75 (1.9%) | |
| May 16 | 41.00 | 1.45 | 80 | 1.8 | 0.75 (1.9%) | |
| 5% Yield On WES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 41.00 | 1.90 | 171 | 1.1 | 0.75 (1.9%) | |
| May 16 | 41.00 | 1.45 | 80 | 1.8 | 0.75 (1.9%) | |
| 10% Yield On WES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 41.00 | 1.90 | 171 | 1.1 | 0.75 (1.9%) | |
| May 16 | 41.00 | 1.45 | 80 | 1.8 | 0.75 (1.9%) | |
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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. | INTC dividend | 2. | SRPT dividend | |
| 3. | FXI dividend | 8. | QQQ dividend | 3. | BBAI dividend | |
| 4. | EEM dividend | 9. | TLT dividend | 4. | LUNR dividend | |
| 5. | IWM dividend | 10. | SLV dividend | 5. | QBTS dividend | |
Want more examples? WERN Dividend | WEX Dividend
