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 Thu 4:16 PM ET):
Wyndham Hotels & Resorts, Inc. (WH) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
76.35 |
78.32 |
76.75 |
+0.05 |
547K |
23 |
6.2B |
WH Dividend-Like Income Using Covered Calls
With WH at 76.75, 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% |
2.30 |
0.6 |
5% |
3.84 |
1.1 |
10% |
7.68 |
2.1 |
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 |
Apr 19 |
80.00 |
0.45 |
23 |
2.0 |
1.68 (2.2%) |
May 17 |
80.00 |
1.25 |
51 |
2.5 |
1.68 (2.2%) |
5% Yield On WH Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 19 |
80.00 |
0.45 |
23 |
2.0 |
1.68 (2.2%) |
May 17 |
80.00 |
1.25 |
51 |
2.5 |
1.68 (2.2%) |
10% Yield On WH Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
80.00 |
1.25 |
51 |
2.5 |
1.68 (2.2%) |
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