WFC Dividend Type Payments
Although WFC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Wells Fargo & Company 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):
Wells Fargo & Company (WFC) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
56.83 | 56.92 | 56.96 | +1.98 | 14.4M | 11 | 187B |
WFC Dividend-Like Income Using Covered Calls
With WFC at 56.96, 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% | 1.71 | 0.5 |
5% | 2.85 | 0.8 |
10% | 5.70 | 1.6 |
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 WFC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 57.00 | 1.93 | 29 | 6.7 | 0.08 (0.1%) | |
Nov 8 | 57.00 | 2.09 | 36 | 5.8 | 0.08 (0.1%) |
5% Yield On WFC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 57.00 | 1.93 | 29 | 6.7 | 0.08 (0.1%) | |
Nov 8 | 57.00 | 2.09 | 36 | 5.8 | 0.08 (0.1%) |
10% Yield On WFC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 57.00 | 1.93 | 29 | 6.7 | 0.08 (0.1%) | |
Nov 8 | 57.00 | 2.09 | 36 | 5.8 | 0.08 (0.1%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | CLOV dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
3. | SPY dividend | 8. | SMCI dividend | 3. | APLD dividend | |
4. | FXI dividend | 9. | KWEB dividend | 4. | CPRI dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | WOLF dividend |
Want more examples? WEX Dividend | WFH Dividend