WH Dividend Type Payments
Although WH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on WYNDHAM HOTELS & RESORTS 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):
| WYNDHAM HOTELS & RESORTS INC (WH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 51.62 | 61.00 | 51.58 | +1.10 | 921K | - | 5.0B |
WH Dividend-Like Income Using Covered Calls
With WH at 51.58, 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% | 1.55 | 0.4 |
| 5% | 2.58 | 0.7 |
| 10% | 5.16 | 1.4 |
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 WH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 62.50 | 1.00 | 214 | 0.5 | 1.50 (2.9%) | |
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| Top 10 Open Interest For Oct 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | BAC dividend | 1. | NBEV dividend | |
| 2. | SPX dividend | 7. | MU dividend | 2. | CRON dividend | |
| 3. | EEM dividend | 8. | FXI dividend | 3. | ARWR dividend | |
| 4. | QQQ dividend | 9. | AMD dividend | 4. | TLRY dividend | |
| 5. | PBR dividend | 10. | XLF dividend | 5. | IBM dividend | |
Want more examples? WGP Dividend | WHD Dividend
