RWR Dividend Type Payments

Although RWR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR DJ REIT 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):

SPDR DJ REIT (RWR)
Bid Ask Last Change Volume P/E Market Cap
89.85 90.81 90.28 +0.65 145K - 26B

RWR Dividend-Like Income Using Covered Calls

With RWR at 90.28, 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% 2.71 0.7
5% 4.51 1.2
10% 9.03 2.5

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 RWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 93.00 0.25 29 0.9 2.19 (2.4%)
Jan 18 94.00 0.70 92 0.8 3.19 (3.5%)
5% Yield On RWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 92.00 0.65 29 2.2 1.19 (1.3%)
Jan 18 92.00 1.40 92 1.5 1.19 (1.3%)
10% Yield On RWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 91.00 1.00 29 3.4 0.19 (0.2%)

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Want more examples? RWO Dividend | RWT Dividend