WTTR Dividend
Although WTTR has a dividend of 0.07 with an ex-dividend date of May 6, you can sell covered calls on Select Energy Services, 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 Mon 4:16 PM ET):
| Select Energy Services, Inc. Class A (WTTR) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 8.60 |
9.00 |
8.90 |
+0.06 |
810K |
30 |
1.1B |
WTTR Dividend-Like Income Using Covered Calls
With WTTR at 8.90, 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% |
0.27 |
0.1 |
| 5% |
0.45 |
0.1 |
| 10% |
0.89 |
0.2 |
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 WTTR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
10.00 |
0.50 |
173 |
0.3 |
1.00 (11.2%) |
| Jun 20 |
10.00 |
0.15 |
54 |
0.3 |
1.00 (11.2%) |
| 5% Yield On WTTR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
10.00 |
0.50 |
173 |
0.3 |
1.00 (11.2%) |
| Jun 20 |
10.00 |
0.15 |
54 |
0.3 |
1.00 (11.2%) |
| 10% Yield On WTTR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
10.00 |
0.50 |
173 |
0.3 |
1.00 (11.2%) |
| Jun 20 |
10.00 |
0.15 |
54 |
0.3 |
1.00 (11.2%) |
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