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 Tue 4:16 PM ET):

Waddell & Reed Financial, Inc (WDR)
Bid Ask Last Change Volume P/E Market Cap
17.10 19.50 17.82 +0.07 916K 7.9 1.4B

WDR Dividend-Like Income Using Covered Calls

With WDR at 17.82, 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% 0.53 0.1
5% 0.89 0.2
10% 1.78 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
Jun 21 20.00 0.35 123 0.3 0.50 (2.8%)
Sep 20 20.00 0.65 214 0.3 0.50 (2.8%)
5% Yield On WDR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 20.00 0.35 123 0.3 0.50 (2.8%)
Sep 20 20.00 0.65 214 0.3 0.50 (2.8%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ROKU dividend
2.EEM dividend 7.GE dividend   2.IQ dividend
3.SPY dividend 8.BAC dividend   3.BHC dividend
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5.FXI dividend 10.GLD dividend   5.VIPS dividend

Want more examples? WDIV Dividend | WDRW Dividend