GWR Dividend Type Payments

Genesee & Wyoming, Inc dividend

Although GWR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Genesee & Wyoming, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Genesee & Wyoming, Inc (GWR)
Bid Ask Last Change Volume P/E Market Cap
83.98 84.00 84.00 +0.68 329K 8.4 4.9B

GWR Dividend-Like Income Using Covered Calls

With GWR at 84.00, 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% 2.52 0.7
5% 4.20 1.2
10% 8.40 2.3

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
Mar 15 85.00 1.25 22 5.7 1.00 (1.2%)
Apr 18 90.00 0.70 56 1.3 6.00 (7.1%)
5% Yield On GWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 85.00 1.25 22 5.7 1.00 (1.2%)
Apr 18 90.00 0.70 56 1.3 6.00 (7.1%)
10% Yield On GWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 85.00 1.25 22 5.7 1.00 (1.2%)
Apr 18 85.00 2.45 56 4.4 1.00 (1.2%)

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