WH Dividend Type Payments
Although WH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Wyndham Hotels & Resorts, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Wyndham Hotels & Resorts, Inc. (WH) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 83.96 |
84.92 |
84.50 |
+0.43 |
934K |
20 |
6.5B |
WH Dividend-Like Income Using Covered Calls
With WH at 84.50, 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% |
2.54 |
0.7 |
| 5% |
4.23 |
1.2 |
| 10% |
8.45 |
2.3 |
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 WH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
85.00 |
2.75 |
44 |
6.3 |
0.08 (0.1%) |
| Jul 18 |
85.00 |
1.00 |
16 |
6.3 |
0.08 (0.1%) |
| 5% Yield On WH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
85.00 |
2.75 |
44 |
6.3 |
0.08 (0.1%) |
| Jul 18 |
85.00 |
1.00 |
16 |
6.3 |
0.08 (0.1%) |
| 10% Yield On WH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
85.00 |
2.75 |
44 |
6.3 |
0.08 (0.1%) |
| Jul 18 |
85.00 |
1.00 |
16 |
6.3 |
0.08 (0.1%) |
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