WTS Dividend Type Payments
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%) | |
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| 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
