WFC Dividend Type Payments
Although WFC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Wells Fargo & Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:25 AM ET):
Wells Fargo & Company (WFC) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
61.70 | 61.71 | 61.70 | +0.60 | 4.8M | 13 | 222B |
WFC Dividend-Like Income Using Covered Calls
With WFC at 61.70, here's a table showing how big the annual "dividend" (i.e. 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% | 1.85 | 0.5 |
5% | 3.09 | 0.8 |
10% | 6.17 | 1.7 |
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 WFC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 62.00 | 0.44 | 4 | 11.0 | 0.29 (0.5%) | |
May 3 | 62.00 | 0.74 | 11 | 6.7 | 0.29 (0.5%) |
5% Yield On WFC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 62.00 | 0.44 | 4 | 11.0 | 0.29 (0.5%) | |
May 3 | 62.00 | 0.74 | 11 | 6.7 | 0.29 (0.5%) |
10% Yield On WFC Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 62.00 | 0.44 | 4 | 11.0 | 0.29 (0.5%) | |
May 3 | 62.00 | 0.74 | 11 | 6.7 | 0.29 (0.5%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | KWEB dividend | 1. | FSLY dividend | |
2. | HYG dividend | 7. | EEM dividend | 2. | EYPT dividend | |
3. | SPY dividend | 8. | TSLA dividend | 3. | CVNA dividend | |
4. | QQQ dividend | 9. | SLV dividend | 4. | PENN dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | TSLA dividend |
Want more examples? WEX Dividend | WFH Dividend