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 Tue 10:50 AM ET):

Webster Financial Corporation (WBS)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
55.18	55.26	55.21	+0.61	171K	12	9.2B

WBS Dividend-Like Income Using Covered Calls

With WBS at 55.21, 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%	1.66	0.5
5%	2.76	0.8
10%	5.52	1.5

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 WBS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	55.00	2.45	46	4.8	0.00 (0.0%)
Oct 17	55.00	3.40	109	2.9	0.00 (0.0%)

5% Yield On WBS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	55.00	2.45	46	4.8	0.00 (0.0%)
Oct 17	55.00	3.40	109	2.9	0.00 (0.0%)

10% Yield On WBS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	55.00	2.45	46	4.8	0.00 (0.0%)
Oct 17	55.00	3.40	109	2.9	0.00 (0.0%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Jul 18 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	GLD dividend	1.	COGT dividend
2.	SLV dividend	7.	AAPL dividend	2.	HTZ dividend
3.	SPY dividend	8.	TLT dividend	3.	STZ dividend
4.	IWM dividend	9.	FXI dividend	4.	IREN dividend
5.	TSLA dividend	10.	QQQ dividend	5.	RCAT dividend

Want more examples? WBIY Dividend | WCC Dividend