WTRG Dividend
Although WTRG has a dividend of 0.33 with an ex-dividend date of May 13, you can sell covered calls on Essential Utilities, Inc. 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):
| Essential Utilities, Inc. (WTRG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 38.00 | 41.00 | 39.14 | -0.56 | 1.2M | 18 | 11B |
WTRG Dividend-Like Income Using Covered Calls
With WTRG at 39.14, 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% | 1.17 | 0.3 |
| 5% | 1.96 | 0.5 |
| 10% | 3.91 | 1.1 |
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:
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ASO dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | SPRY dividend | |
| 3. | IWM dividend | 8. | KWEB dividend | 3. | EWTX dividend | |
| 4. | FXI dividend | 9. | INTC dividend | 4. | ZIM dividend | |
| 5. | QQQ dividend | 10. | TLT dividend | 5. | SOUN dividend | |
Want more examples? WTMF Dividend | WTS Dividend
