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 2:00 PM ET):

Williams-Sonoma, Inc. (DE) (WSM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
173.98	174.33	174.16	+6.66	1.2M	16	21B

WSM Dividend-Like Income Using Covered Calls

With WSM at 174.16, 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%	5.22	1.4
5%	8.71	2.4
10%	17.42	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	175.00	22.10	152	14.5	0.67 (0.4%)
May 16	175.00	15.00	61	24.6	0.67 (0.4%)

5% Yield On WSM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	175.00	22.10	152	14.5	0.67 (0.4%)
May 16	175.00	15.00	61	24.6	0.67 (0.4%)

10% Yield On WSM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	175.00	22.10	152	14.5	0.67 (0.4%)
May 16	175.00	15.00	61	24.6	0.67 (0.4%)

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Want more examples? WSFS Dividend | WSO Dividend