OSW Dividend Type Payments
Although OSW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on OneSpaWorld Holdings Limited - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:10 PM ET):
| OneSpaWorld Holdings Limited - Common Shares (OSW) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 22.46 |
22.50 |
22.47 |
+0.68 |
54K |
- |
2.2B |
OSW Dividend-Like Income Using Covered Calls
With OSW at 22.47, here's a table showing how big the annual "dividend" (i.e. 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% |
0.67 |
0.2 |
| 5% |
1.12 |
0.3 |
| 10% |
2.25 |
0.6 |
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 OSW Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
22.50 |
0.80 |
100 |
0.8 |
0.00 (0.0%) |
| Mar 20 |
22.50 |
1.25 |
191 |
0.7 |
0.00 (0.0%) |
| 5% Yield On OSW Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
22.50 |
0.80 |
100 |
0.8 |
0.00 (0.0%) |
| Mar 20 |
22.50 |
1.25 |
191 |
0.7 |
0.00 (0.0%) |
| 10% Yield On OSW Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
22.50 |
0.80 |
100 |
0.8 |
0.00 (0.0%) |
| Mar 20 |
22.50 |
1.25 |
191 |
0.7 |
0.00 (0.0%) |
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