WAT Dividend Type Payments

Waters Corporation dividend

Although WAT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Waters Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:05 PM ET):

Waters Corporation (WAT)
Bid Ask Last Change Volume P/E Market Cap
335.07 335.97 335.52 +2.38 195K 30 20B

WAT Dividend-Like Income Using Covered Calls

With WAT at 335.52, 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% 10.07 2.8
5% 16.78 4.6
10% 33.55 9.2

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 WAT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 340.00 0.10 3 3.3 4.03 (1.2%)
Nov 21 340.00 14.80 38 38.9 4.03 (1.2%)
5% Yield On WAT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 340.00 14.80 38 38.9 4.03 (1.2%)
May 15 340.00 32.00 213 15.0 4.03 (1.2%)
10% Yield On WAT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 340.00 14.80 38 38.9 4.03 (1.2%)
May 15 340.00 32.00 213 15.0 4.03 (1.2%)

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