WWW Dividend

Although WWW has a dividend of 0.10 with an ex-dividend date of Jan 2, you can sell covered calls on Wolverine World Wide, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Wolverine World Wide, Inc. (WWW)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
21.07	23.31	22.05	-1.11	1.0M	-	1.9B

WWW Dividend-Like Income Using Covered Calls

With WWW at 22.05, 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%	0.66	0.2
5%	1.10	0.3
10%	2.21	0.6

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 WWW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	25.00	1.50	367	0.4	1.69 (7.7%)
Jun 20	25.00	1.30	185	0.7	1.69 (7.7%)

5% Yield On WWW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	25.00	1.50	367	0.4	1.69 (7.7%)
Jun 20	25.00	1.30	185	0.7	1.69 (7.7%)

10% Yield On WWW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 20	25.00	1.30	185	0.7	1.69 (7.7%)
Mar 21	25.00	1.15	94	1.2	1.69 (7.7%)

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Want more examples? WWR Dividend | WY Dividend