WCG Dividend Type Payments

WELLCARE HEALTH PLANS dividend

Although WCG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on WELLCARE HEALTH PLANS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

WELLCARE HEALTH PLANS (WCG)
Bid Ask Last Change Volume P/E Market Cap
288.05 292.40 292.36 +2.37 398K 27 13B

WCG Dividend-Like Income Using Covered Calls

With WCG at 292.36, 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% 8.77 2.4
5% 14.62 4.0
10% 29.24 8.0

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 WCG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 300.00 0.20 4 5.0 7.60 (2.6%)
Sep 21 320.00 1.05 39 2.7 27.60 (9.4%)
5% Yield On WCG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 300.00 0.20 4 5.0 7.60 (2.6%)
Sep 21 310.00 2.45 39 6.3 17.60 (6.0%)
10% Yield On WCG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 300.00 5.10 39 13.1 7.60 (2.6%)
Dec 21 300.00 14.20 130 10.9 7.60 (2.6%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.FB dividend   4.CGC dividend
5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? WCC Dividend | WCHN Dividend