WDFC Dividend
Although WDFC has a dividend of 0.88 with an ex-dividend date of Oct 18, you can sell covered calls on WD-40 Company 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):
| WD-40 Company (WDFC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 220.00 | 280.00 | 253.05 | -3.76 | 62K | 51 | 3.5B |
WDFC Dividend-Like Income Using Covered Calls
With WDFC at 253.05, 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% | 7.59 | 2.1 |
| 5% | 12.65 | 3.5 |
| 10% | 25.31 | 6.9 |
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 WDFC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 280.00 | 3.40 | 40 | 8.5 | 0.00 (0.0%) | |
| Oct 18 | 280.00 | 1.95 | 12 | 16.3 | 0.00 (0.0%) | |
| 5% Yield On WDFC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 280.00 | 3.40 | 40 | 8.5 | 0.00 (0.0%) | |
| Oct 18 | 280.00 | 1.95 | 12 | 16.3 | 0.00 (0.0%) | |
| 10% Yield On WDFC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 280.00 | 3.40 | 40 | 8.5 | 0.00 (0.0%) | |
| Oct 18 | 280.00 | 1.95 | 12 | 16.3 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | ASTS dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | LYFT dividend | |
| 3. | SPY dividend | 8. | SMCI dividend | 3. | AEHR dividend | |
| 4. | FXI dividend | 9. | KWEB dividend | 4. | JOBY dividend | |
| 5. | QQQ dividend | 10. | HYG dividend | 5. | COIN dividend | |
Want more examples? WDC Dividend | WDIV Dividend
