GWW Dividend Type Payments

W.W. Grainger, Inc dividend

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

W.W. Grainger, Inc (GWW)
Bid Ask Last Change Volume P/E Market Cap
260.81 280.00 267.22 -1.44 414K 19 15B

GWW Dividend-Like Income Using Covered Calls

With GWW at 267.22, 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% 8.02 2.2
5% 13.36 3.7
10% 26.72 7.3

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 GWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 26 310.00 0.25 8 3.1 30.00 (11.2%)
Aug 2 310.00 0.35 15 2.3 30.00 (11.2%)
5% Yield On GWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 26 305.00 0.40 8 5.0 25.00 (9.4%)
Aug 2 302.50 0.60 15 4.0 22.50 (8.4%)
10% Yield On GWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 26 297.50 0.70 8 8.8 17.50 (6.5%)
Aug 2 295.00 1.20 15 8.0 15.00 (5.6%)

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Want more examples? GWRE Dividend | GWX Dividend