WLK Dividend

Westlake Corporation dividend

Although WLK has a dividend of 0.53 with an ex-dividend date of Mar 4, you can sell covered calls on Westlake Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:10 AM ET):

Westlake Corporation (WLK)
Bid Ask Last Change Volume P/E Market Cap
107.27 107.77 107.52 -2.19 203K 155 14B

WLK Dividend-Like Income Using Covered Calls

With WLK at 107.52, 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% 3.23 0.9
5% 5.38 1.5
10% 10.75 2.9

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 WLK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 110.00 1.50 53 2.8 2.23 (2.1%)
Oct 17 110.00 7.30 236 3.1 2.23 (2.1%)
5% Yield On WLK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 110.00 1.50 53 2.8 2.23 (2.1%)
Oct 17 110.00 7.30 236 3.1 2.23 (2.1%)
10% Yield On WLK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 110.00 7.30 236 3.1 2.23 (2.1%)
Jul 18 110.00 4.50 145 3.1 2.23 (2.1%)

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