WGO Dividend

WINNEBAGO INDUSTRIES dividend

Although WGO has a dividend of 0.10 with an ex-dividend date of Sep 11, you can sell covered calls on WINNEBAGO INDUSTRIES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:10 PM ET):

WINNEBAGO INDUSTRIES (WGO)
Bid Ask Last Change Volume P/E Market Cap
37.45 37.50 37.45 +0.45 247K 12 1.2B

WGO Dividend-Like Income Using Covered Calls

With WGO at 37.45, 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% 1.12 0.3
5% 1.87 0.5
10% 3.75 1.0

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 WGO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 45.00 0.10 32 0.3 7.50 (20.0%)
Oct 19 45.00 0.55 60 0.9 7.50 (20.0%)
5% Yield On WGO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.75 32 2.3 2.50 (6.7%)
Oct 19 45.00 0.55 60 0.9 7.50 (20.0%)
10% Yield On WGO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.75 32 2.3 2.50 (6.7%)
Oct 19 40.00 1.65 60 2.8 2.50 (6.7%)

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