WDR Dividend Type Payments

Waddell & Reed Financial, Inc dividend

Although WDR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Waddell & Reed Financial, Inc 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):

Waddell & Reed Financial, Inc (WDR)
Bid Ask Last Change Volume P/E Market Cap
15.76 18.31 18.19 -0.41 794K - 0.0B

WDR Dividend-Like Income Using Covered Calls

With WDR at 18.19, 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% 0.55 0.1
5% 0.91 0.2
10% 1.82 0.5

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 WDR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 20.00 0.10 36 0.3 1.69 (9.3%)
Mar 15 22.50 0.15 92 0.2 4.19 (23.0%)
5% Yield On WDR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 20.00 0.10 36 0.3 1.69 (9.3%)
Mar 15 20.00 0.50 92 0.5 1.69 (9.3%)
10% Yield On WDR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 20.00 0.50 92 0.5 1.69 (9.3%)

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