GWW Dividend Type Payments

WW GRAINGER dividend

Although GWW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on WW GRAINGER 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):

WW GRAINGER (GWW)
Bid Ask Last Change Volume P/E Market Cap
357.25 357.70 357.73 -2.22 467K 26 20B

GWW Dividend-Like Income Using Covered Calls

With GWW at 357.73, 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% 10.73 2.9
5% 17.89 4.9
10% 35.77 9.8

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 GWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 372.50 0.35 8 4.4 14.80 (4.1%)
Aug 31 380.00 0.55 15 3.7 22.30 (6.2%)
5% Yield On GWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 370.00 0.55 8 6.9 12.30 (3.4%)
Aug 31 375.00 0.80 15 5.3 17.30 (4.8%)
10% Yield On GWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 367.50 0.90 8 11.3 9.80 (2.7%)
Aug 31 370.00 1.75 15 11.7 12.30 (3.4%)

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