WMS Dividend

Although WMS has a dividend of 0.16 with an ex-dividend date of Feb 28, you can sell covered calls on Advanced Drainage Systems, 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):

Advanced Drainage Systems, Inc. (WMS)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
111.90	121.80	114.40	-3.11	539K	20	9.1B

WMS Dividend-Like Income Using Covered Calls

With WMS at 114.40, 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%	3.43	0.9
5%	5.72	1.6
10%	11.44	3.1

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 WMS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	125.00	9.50	211	4.5	3.20 (2.8%)
Dec 19	125.00	10.50	302	3.5	3.20 (2.8%)

5% Yield On WMS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	125.00	9.50	211	4.5	3.20 (2.8%)
Dec 19	125.00	10.50	302	3.5	3.20 (2.8%)

10% Yield On WMS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	125.00	9.50	211	4.5	3.20 (2.8%)
Dec 19	125.00	10.50	302	3.5	3.20 (2.8%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Mar 21 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	KWEB dividend	1.	LUNR dividend
2.	FXI dividend	7.	INTC dividend	2.	HIMS dividend
3.	SPY dividend	8.	SLV dividend	3.	RGTI dividend
4.	EEM dividend	9.	QQQ dividend	4.	SOUN dividend
5.	IWM dividend	10.	HYG dividend	5.	WOLF dividend

Want more examples? WMK Dividend | WMT Dividend