WHD Dividend
Although WHD has a dividend of 0.14 with an ex-dividend date of Mar 2, you can sell covered calls on Cactus, Inc. Class A 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):
| Cactus, Inc. Class A (WHD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 56.57 | 93.10 | 58.00 | +1.47 | 1.2M | 23 | 4.5B |
WHD Dividend-Like Income Using Covered Calls
With WHD at 58.00, 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% | 1.74 | 0.5 |
| 5% | 2.90 | 0.8 |
| 10% | 5.80 | 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:
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | KWEB dividend | 7. | SPY dividend | 2. | APLD dividend | |
| 3. | NVDA dividend | 8. | EWZ dividend | 3. | AXTI dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | U dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | QS dividend | |
Want more examples? WH Dividend | WHG Dividend
