WSM Dividend Type Payments
Although WSM has no upcoming (meaning, Board-approved and announced) dividends, 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 Mon 4:16 PM ET):
| Williams-Sonoma, Inc. (DE) (WSM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 200.00 | 202.00 | 201.07 | +4.12 | 893K | 22 | 24B |
WSM Dividend-Like Income Using Covered Calls
With WSM at 201.07, 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% | 6.03 | 1.7 |
| 5% | 10.05 | 2.8 |
| 10% | 20.11 | 5.5 |
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 | |
| Oct 17 | 210.00 | 3.50 | 33 | 10.6 | 8.00 (4.0%) | |
| Sep 19 | 210.00 | 0.55 | 5 | 11.0 | 8.00 (4.0%) | |
| 5% Yield On WSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 210.00 | 3.50 | 33 | 10.6 | 8.00 (4.0%) | |
| Sep 19 | 210.00 | 0.55 | 5 | 11.0 | 8.00 (4.0%) | |
| 10% Yield On WSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 210.00 | 3.50 | 33 | 10.6 | 8.00 (4.0%) | |
| Sep 19 | 210.00 | 0.55 | 5 | 11.0 | 8.00 (4.0%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | OPEN dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | QURE dividend | |
| 3. | IWM dividend | 8. | TSLA dividend | 3. | REPL dividend | |
| 4. | PCG dividend | 9. | SLV dividend | 4. | APPS dividend | |
| 5. | IBIT dividend | 10. | FXI dividend | 5. | GRAL dividend | |
Want more examples? WSFS Dividend | WSO Dividend
