WHD Dividend Type Payments
Although WHD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cactus, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:30 AM ET):
| Cactus, Inc. Class A (WHD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 37.02 |
37.10 |
37.10 |
+0.22 |
77K |
13 |
2.9B |
WHD Dividend-Like Income Using Covered Calls
With WHD at 37.10, 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% |
1.11 |
0.3 |
| 5% |
1.86 |
0.5 |
| 10% |
3.71 |
1.0 |
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 WHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
2.80 |
116 |
2.4 |
2.90 (7.8%) |
| May 16 |
40.00 |
1.05 |
25 |
4.2 |
2.90 (7.8%) |
| 5% Yield On WHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
2.80 |
116 |
2.4 |
2.90 (7.8%) |
| May 16 |
40.00 |
1.05 |
25 |
4.2 |
2.90 (7.8%) |
| 10% Yield On WHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
2.80 |
116 |
2.4 |
2.90 (7.8%) |
| May 16 |
40.00 |
1.05 |
25 |
4.2 |
2.90 (7.8%) |
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