W Dividend Type Payments

Wayfair Inc. Class A dividend

Although W has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Wayfair Inc. Class A 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):

Wayfair Inc. Class A (W)
Bid Ask Last Change Volume P/E Market Cap
77.80 81.00 77.84 +1.47 6.5M - 10B

W Dividend-Like Income Using Covered Calls

With W at 77.84, 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% 2.34 0.6
5% 3.89 1.1
10% 7.78 2.1

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 W Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 5 81.00 1.68 15 11.2 0.00 (0.0%)
Sep 12 81.00 2.49 22 11.3 0.00 (0.0%)
5% Yield On W Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 5 81.00 1.68 15 11.2 0.00 (0.0%)
Sep 12 81.00 2.49 22 11.3 0.00 (0.0%)
10% Yield On W Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 5 81.00 1.68 15 11.2 0.00 (0.0%)
Sep 12 81.00 2.49 22 11.3 0.00 (0.0%)

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