WAL Dividend Type Payments
Although WAL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Western Alliance Bancorporation (DE) 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):
| Western Alliance Bancorporation (DE) (WAL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 71.36 | 75.23 | 72.76 | -1.46 | 557K | 10 | 8.2B |
WAL Dividend-Like Income Using Covered Calls
With WAL at 72.76, 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% | 2.18 | 0.6 |
| 5% | 3.64 | 1.0 |
| 10% | 7.28 | 2.0 |
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 WAL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 75.00 | 3.40 | 52 | 6.1 | 0.00 (0.0%) | |
| Sep 19 | 75.00 | 5.50 | 115 | 4.6 | 0.00 (0.0%) | |
| 5% Yield On WAL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 75.00 | 3.40 | 52 | 6.1 | 0.00 (0.0%) | |
| Sep 19 | 75.00 | 5.50 | 115 | 4.6 | 0.00 (0.0%) | |
| 10% Yield On WAL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 75.00 | 3.40 | 52 | 6.1 | 0.00 (0.0%) | |
| Sep 19 | 75.00 | 5.50 | 115 | 4.6 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | ELF dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | APLD dividend | |
| 3. | SLV dividend | 8. | FXI dividend | 3. | RXRX dividend | |
| 4. | QQQ dividend | 9. | TSLA dividend | 4. | SFIX dividend | |
| 5. | GLD dividend | 10. | TLT dividend | 5. | OKLO dividend | |
Want more examples? WAFD Dividend | WANT Dividend
