WSM Dividend Type Payments
Although WSM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Williams-Sonoma, Inc. (DE) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Williams-Sonoma, Inc. (DE) (WSM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 181.00 | 215.00 | 194.67 | -0.51 | 1.4M | 19 | 24B |
WSM Dividend-Like Income Using Covered Calls
With WSM at 194.67, 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% | 5.84 | 1.6 |
| 5% | 9.73 | 2.7 |
| 10% | 19.47 | 5.3 |
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 WSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 220.00 | 15.20 | 173 | 8.8 | 5.00 (2.6%) | |
| May 16 | 220.00 | 7.80 | 82 | 9.5 | 5.00 (2.6%) | |
| 5% Yield On WSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 220.00 | 15.20 | 173 | 8.8 | 5.00 (2.6%) | |
| May 16 | 220.00 | 7.80 | 82 | 9.5 | 5.00 (2.6%) | |
| 10% Yield On WSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 220.00 | 15.20 | 173 | 8.8 | 5.00 (2.6%) | |
| May 16 | 220.00 | 7.80 | 82 | 9.5 | 5.00 (2.6%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | LUNR dividend | |
| 2. | SPY dividend | 7. | INTC dividend | 2. | HIMS dividend | |
| 3. | FXI dividend | 8. | QQQ dividend | 3. | ZETA dividend | |
| 4. | EEM dividend | 9. | SLV dividend | 4. | WOLF dividend | |
| 5. | KWEB dividend | 10. | TLT dividend | 5. | DNA dividend | |
Want more examples? WSFS Dividend | WSO Dividend
