WFRD Dividend Type Payments
Although WFRD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Weatherford International plc - Ordinary shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Weatherford International plc - Ordinary shares (WFRD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 91.25 |
103.89 |
100.70 |
-2.92 |
854K |
- |
7.4B |
WFRD Dividend-Like Income Using Covered Calls
With WFRD at 100.70, 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% |
3.02 |
0.8 |
| 5% |
5.04 |
1.4 |
| 10% |
10.07 |
2.8 |
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 WFRD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
105.00 |
0.55 |
9 |
6.1 |
1.11 (1.1%) |
| Mar 20 |
105.00 |
3.20 |
37 |
8.6 |
1.11 (1.1%) |
| 5% Yield On WFRD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
105.00 |
0.55 |
9 |
6.1 |
1.11 (1.1%) |
| Mar 20 |
105.00 |
3.20 |
37 |
8.6 |
1.11 (1.1%) |
| 10% Yield On WFRD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
105.00 |
0.55 |
9 |
6.1 |
1.11 (1.1%) |
| Mar 20 |
105.00 |
3.20 |
37 |
8.6 |
1.11 (1.1%) |
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