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
75.09 75.10 75.10 -2.64 541K - 0.0B

GWR Dividend-Like Income Using Covered Calls

With GWR at 75.10, 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% 2.25 0.6
5% 3.76 1.0
10% 7.51 2.1

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
Dec 21 80.00 0.10 8 1.3 4.90 (6.5%)
Jan 18 80.00 0.95 36 2.6 4.90 (6.5%)
5% Yield On GWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 80.00 0.10 8 1.3 4.90 (6.5%)
Jan 18 80.00 0.95 36 2.6 4.90 (6.5%)
10% Yield On GWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 75.00 1.45 8 16.9 0.00 (0.0%)
Jan 18 80.00 0.95 36 2.6 4.90 (6.5%)

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