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 Thu 12:30 PM ET):

Watts Water Technologies, Inc. Class A (WTS)
Bid Ask Last Change Volume P/E Market Cap
211.40 212.06 212.02 -1.10 64K 25 7.1B

WTS Dividend-Like Income Using Covered Calls

With WTS at 212.02, 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% 6.36 1.7
5% 10.60 2.9
10% 21.20 5.8

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 WTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 220.00 3.20 58 5.5 7.94 (3.7%)
Sep 19 220.00 8.50 184 4.6 7.94 (3.7%)
5% Yield On WTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 220.00 3.20 58 5.5 7.94 (3.7%)
Sep 19 220.00 8.50 184 4.6 7.94 (3.7%)

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