WDR Dividend

Waddell & Reed Financial, Inc dividend

Although WDR has a dividend of 0.25 with an ex-dividend date of Jul 10, 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
15.67 19.87 16.28 -0.19 1.1M 7.7 1.2B

WDR Dividend-Like Income Using Covered Calls

With WDR at 16.28, 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% 0.49 0.1
5% 0.81 0.2
10% 1.63 0.4

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:

Want to increase dividends with covered calls?  Sign Up For A Free Trial

Top 10 Open Interest For Jul 19 Expiration     Top 5 High Yield
1.SPY dividend 6.QCOM dividend   1.ZNGA dividend
2.SPX dividend 7.OIH dividend   2.ITCI dividend
3.EEM dividend 8.FXI dividend   3.KPTI dividend
4.USO dividend 9.AAPL dividend   4.BB dividend
5.QQQ dividend 10.HYG dividend   5.MU dividend

Want more examples? WDIV Dividend | WDRW Dividend