WBS Dividend Type Payments

Although WBS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Webster Financial Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Webster Financial Corporation (WBS)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
44.72	45.75	45.25	-0.39	784K	10	7.8B

WBS Dividend-Like Income Using Covered Calls

With WBS at 45.25, 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%	1.36	0.4
5%	2.26	0.6
10%	4.53	1.2

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 WBS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 15	50.00	0.60	40	1.5	4.25 (9.4%)
Jan 17	50.00	1.25	103	1.2	4.25 (9.4%)

5% Yield On WBS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 15	50.00	0.60	40	1.5	4.25 (9.4%)
Jan 17	50.00	1.25	103	1.2	4.25 (9.4%)

10% Yield On WBS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 15	50.00	0.60	40	1.5	4.25 (9.4%)
Apr 17	50.00	2.50	193	1.3	4.25 (9.4%)

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Want more examples? WBIY Dividend | WCC Dividend