GWR Dividend Type Payments

GENESEE & WYOMING dividend

Although GWR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on GENESEE & WYOMING 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):

GENESEE & WYOMING (GWR)
Bid Ask Last Change Volume P/E Market Cap
88.22 95.00 88.23 +0.02 531K 9.1 5.3B

GWR Dividend-Like Income Using Covered Calls

With GWR at 88.23, 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% 2.65 0.7
5% 4.41 1.2
10% 8.82 2.4

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 GWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 95.00 0.60 60 1.0 0.00 (0.0%)
Jan 18 100.00 1.10 151 0.7 5.00 (5.7%)
5% Yield On GWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 95.00 2.20 151 1.5 0.00 (0.0%)

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