PWP Dividend Type Payments
Although PWP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Perella Weinberg Partners - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:05 PM ET):
| Perella Weinberg Partners - Class A (PWP) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 19.56 |
19.59 |
19.57 |
-0.23 |
104K |
- |
1.8B |
PWP Dividend-Like Income Using Covered Calls
With PWP at 19.57, 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% |
0.59 |
0.2 |
| 5% |
0.98 |
0.3 |
| 10% |
1.96 |
0.5 |
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 PWP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 18 |
20.00 |
0.40 |
24 |
1.7 |
0.41 (2.1%) |
| Dec 20 |
20.00 |
0.95 |
87 |
1.1 |
0.41 (2.1%) |
| 5% Yield On PWP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 18 |
20.00 |
0.40 |
24 |
1.7 |
0.41 (2.1%) |
| Dec 20 |
20.00 |
0.95 |
87 |
1.1 |
0.41 (2.1%) |
| 10% Yield On PWP Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 18 |
20.00 |
0.40 |
24 |
1.7 |
0.41 (2.1%) |
| Dec 20 |
20.00 |
0.95 |
87 |
1.1 |
0.41 (2.1%) |
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