WU Dividend
Although WU has a dividend of 0.24 with an ex-dividend date of Dec 23, you can sell covered calls on Western Union Company (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:15 PM ET):
Western Union Company (The) (WU) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
11.13 | 11.14 | 11.14 | 0.00 | 1.7M | 5.7 | 3.8B |
WU Dividend-Like Income Using Covered Calls
With WU at 11.14, 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% | 0.33 | 0.1 |
5% | 0.56 | 0.2 |
10% | 1.11 | 0.3 |
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 WU Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 16 | 12.00 | 0.40 | 150 | 0.3 | 0.86 (7.7%) | |
Jan 17 | 12.00 | 0.05 | 31 | 0.2 | 0.86 (7.7%) |
5% Yield On WU Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 16 | 12.00 | 0.40 | 150 | 0.3 | 0.86 (7.7%) | |
Jan 17 | 12.00 | 0.05 | 31 | 0.2 | 0.86 (7.7%) |
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Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
2. | SPY dividend | 7. | IWM dividend | 2. | RGTI dividend | |
3. | XLF dividend | 8. | KWEB dividend | 3. | CIFR dividend | |
4. | QQQ dividend | 9. | TLT dividend | 4. | WOLF dividend | |
5. | FXI dividend | 10. | TSLA dividend | 5. | ACHR dividend |
Want more examples? WTW Dividend | WVE Dividend