WEX Dividend Type Payments

WEX Inc. common stock dividend

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

WEX Inc. common stock (WEX)
Bid Ask Last Change Volume P/E Market Cap
150.97 169.01 158.95 +10.41 967K 19 5.1B

WEX Dividend-Like Income Using Covered Calls

With WEX at 158.95, 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% 4.77 1.3
5% 7.95 2.2
10% 15.90 4.4

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 WEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 170.00 1.00 43 2.3 0.99 (0.6%)
May 15 170.00 6.00 99 6.1 0.99 (0.6%)
5% Yield On WEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 170.00 1.00 43 2.3 0.99 (0.6%)
May 15 170.00 6.00 99 6.1 0.99 (0.6%)
10% Yield On WEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 170.00 6.00 99 6.1 0.99 (0.6%)
Aug 21 170.00 12.20 197 6.2 0.99 (0.6%)

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