WBA Dividend

WALGREEN BOOTS ALLIANCE dividend

Although WBA has a dividend of 0.44 with an ex-dividend date of Aug 17, you can sell covered calls on WALGREEN BOOTS ALLIANCE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

WALGREEN BOOTS ALLIANCE (WBA)
Bid Ask Last Change Volume P/E Market Cap
69.62 69.93 69.62 +0.89 9.3M 16 68B

WBA Dividend-Like Income Using Covered Calls

With WBA at 69.62, 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% 2.09 0.6
5% 3.48 1.0
10% 6.96 1.9

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
Aug 24 72.00 0.09 9 1.0 2.07 (3.0%)
Aug 31 73.00 0.12 16 0.8 3.07 (4.4%)
5% Yield On WBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 72.00 0.09 9 1.0 2.07 (3.0%)
Aug 31 72.50 0.18 16 1.1 2.57 (3.7%)
10% Yield On WBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 71.00 0.22 9 2.4 1.07 (1.5%)
Aug 31 71.50 0.33 16 2.1 1.57 (2.3%)

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