WH Dividend

Although WH has a dividend of 0.25 with an ex-dividend date of Sep 13, 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 Fri 4:16 PM ET):

WYNDHAM HOTELS & RESORTS INC (WH)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
50.00	60.95	57.43	+0.02	336K	-	5.7B

WH Dividend-Like Income Using Covered Calls

With WH at 57.43, 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%	1.72	0.5
5%	2.87	0.8
10%	5.74	1.6

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
Nov 16	65.00	0.75	92	0.8	4.05 (7.1%)
Feb 15	65.00	1.75	183	1.0	4.05 (7.1%)

5% Yield On WH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 16	65.00	0.75	92	0.8	4.05 (7.1%)
Feb 15	65.00	1.75	183	1.0	4.05 (7.1%)

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