WSM Dividend
Although WSM has a dividend of 0.57 with an ex-dividend date of Oct 18, you can sell covered calls on Williams-Sonoma, Inc. (DE) 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):
Williams-Sonoma, Inc. (DE) (WSM) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
148.70 | 158.00 | 151.49 | -0.65 | 1.1M | 15 | 19B |
WSM Dividend-Like Income Using Covered Calls
With WSM at 151.49, 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% | 4.54 | 1.2 |
5% | 7.57 | 2.1 |
10% | 15.15 | 4.2 |
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 WSM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 160.00 | 5.60 | 43 | 13.0 | 2.00 (1.3%) | |
Oct 18 | 160.00 | 1.40 | 15 | 9.3 | 2.00 (1.3%) |
5% Yield On WSM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 160.00 | 5.60 | 43 | 13.0 | 2.00 (1.3%) | |
Oct 18 | 160.00 | 1.40 | 15 | 9.3 | 2.00 (1.3%) |
10% Yield On WSM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 160.00 | 5.60 | 43 | 13.0 | 2.00 (1.3%) | |
Oct 18 | 160.00 | 1.40 | 15 | 9.3 | 2.00 (1.3%) |
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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? WSFS Dividend | WSO Dividend