WES Dividend Type Payments

Western Gas Partners dividend

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

Western Gas Partners (WES)
Bid Ask Last Change Volume P/E Market Cap
24.88 33.15 30.70 -0.88 420K 21 14B

WES Dividend-Like Income Using Covered Calls

With WES at 30.70, 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% 0.92 0.3
5% 1.54 0.4
10% 3.07 0.8

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 WES Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 36.00 0.10 31 0.3 2.85 (9.3%)
Nov 15 35.00 0.35 122 0.3 1.85 (6.0%)
5% Yield On WES Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 35.00 0.15 31 0.5 1.85 (6.0%)
Nov 15 33.00 0.80 122 0.5 0.00 (0.0%)

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Want more examples? WERN Dividend | WETF Dividend