WTS Dividend Type Payments

Watts Water Technologies, Inc. Class A dividend

Although WTS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Watts Water Technologies, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:15 AM ET):

Watts Water Technologies, Inc. Class A (WTS)
Bid Ask Last Change Volume P/E Market Cap
287.73 288.91 287.75 +0.31 26K 30 10B

WTS Dividend-Like Income Using Covered Calls

With WTS at 287.75, 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% 8.63 2.4
5% 14.39 3.9
10% 28.78 7.9

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 WTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 290.00 13.10 124 10.6 1.09 (0.4%)
Jun 18 290.00 14.60 158 9.2 1.09 (0.4%)
5% Yield On WTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 290.00 13.10 124 10.6 1.09 (0.4%)
Jun 18 290.00 14.60 158 9.2 1.09 (0.4%)
10% Yield On WTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 290.00 13.10 124 10.6 1.09 (0.4%)
Jun 18 290.00 14.60 158 9.2 1.09 (0.4%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Jan 16 Expiration     Top 5 High Yield
1.NVDA dividend 6.AAPL dividend   1.BHVN dividend
2.IBIT dividend 7.SPY dividend   2.DAWN dividend
3.INTC dividend 8.NFLX dividend   3.SOC dividend
4.TLT dividend 9.GLD dividend   4.CSIQ dividend
5.SLV dividend 10.QQQ dividend   5.AEVA dividend

Want more examples? WTRG Dividend | WTTR Dividend