KWR Dividend Type Payments

QUAKER CHEMICAL dividend

Although KWR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on QUAKER CHEMICAL 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):

QUAKER CHEMICAL (KWR)
Bid Ask Last Change Volume P/E Market Cap
172.66 172.67 172.83 +1.31 111K 68 2.3B

KWR Dividend-Like Income Using Covered Calls

With KWR at 172.83, 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% 5.18 1.4
5% 8.64 2.4
10% 17.28 4.7

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 KWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 180.00 1.20 36 3.3 7.33 (4.2%)
Oct 19 175.00 4.50 64 7.0 2.33 (1.3%)
5% Yield On KWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 180.00 1.20 36 3.3 7.33 (4.2%)
Oct 19 175.00 4.50 64 7.0 2.33 (1.3%)
10% Yield On KWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 175.00 2.85 36 7.9 2.33 (1.3%)
Oct 19 175.00 4.50 64 7.0 2.33 (1.3%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
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