WBA Dividend

Walgreen Boots Alliance, Inc dividend

Although WBA has a dividend of 0.46 with an ex-dividend date of Aug 19, you can sell covered calls on Walgreen Boots Alliance, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:25 PM ET):

Walgreen Boots Alliance, Inc (WBA)
Bid Ask Last Change Volume P/E Market Cap
55.96 55.97 55.97 +0.08 1.4M 11 51B

WBA Dividend-Like Income Using Covered Calls

With WBA at 55.97, 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% 1.68 0.5
5% 2.80 0.8
10% 5.60 1.5

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 WBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 57.50 0.02 4 0.5 1.53 (2.7%)
Jul 26 58.00 0.08 11 0.7 2.03 (3.6%)
5% Yield On WBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 57.00 0.06 4 1.5 1.03 (1.8%)
Jul 26 57.50 0.15 11 1.4 1.53 (2.7%)
10% Yield On WBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 56.50 0.17 4 4.3 0.53 (0.9%)
Jul 26 57.00 0.27 11 2.5 1.03 (1.8%)

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Want more examples? WB Dividend | WBAI Dividend