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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Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | GLD dividend | 1. | RARE dividend | |
2. | SLV dividend | 7. | AAPL dividend | 2. | TMC dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | CELC dividend | |
4. | TSLA dividend | 9. | IBIT dividend | 4. | AEVA dividend | |
5. | IWM dividend | 10. | QQQ dividend | 5. | PRAX dividend |
Want more examples? WSFS Dividend | WSO Dividend