DES Dividend Type Payments

Wisdomtree US Sm-Cap Dividend dividend

Although DES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Wisdomtree US Sm-Cap Dividend to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Wisdomtree US Sm-Cap Dividend (DES)
Bid Ask Last Change Volume P/E Market Cap
25.49 31.00 26.46 0.00 326K - 0.0B

DES Dividend-Like Income Using Covered Calls

With DES at 26.46, here's a table showing how big the annual "dividend" (ie. 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% 0.79 0.2
5% 1.32 0.4
10% 2.65 0.7

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 Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? DERM Dividend | DESC Dividend