WSM Dividend

Although WSM has a dividend of 0.66 with an ex-dividend date of Jul 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 Wed 4:16 PM ET):

Williams-Sonoma, Inc. (DE) (WSM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
170.00	176.08	173.73	+4.52	921K	20	21B

WSM Dividend-Like Income Using Covered Calls

With WSM at 173.73, 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%	5.21	1.4
5%	8.69	2.4
10%	17.37	4.8

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
Aug 15	180.00	5.00	38	13.2	3.92 (2.3%)
Oct 17	180.00	11.30	101	11.2	3.92 (2.3%)

5% Yield On WSM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	180.00	5.00	38	13.2	3.92 (2.3%)
Oct 17	180.00	11.30	101	11.2	3.92 (2.3%)

10% Yield On WSM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	180.00	5.00	38	13.2	3.92 (2.3%)
Oct 17	180.00	11.30	101	11.2	3.92 (2.3%)

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Want more examples? WSFS Dividend | WSO Dividend