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 Mon 4:16 PM ET):
| Wyndham Hotels & Resorts, Inc (WH) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 50.34 |
59.33 |
58.45 |
-0.34 |
549K |
41 |
5.7B |
WH Dividend-Like Income Using Covered Calls
With WH at 58.45, 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% |
1.75 |
0.5 |
| 5% |
2.92 |
0.8 |
| 10% |
5.85 |
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 |
| Aug 16 |
62.50 |
0.25 |
26 |
1.0 |
3.17 (5.4%) |
| Nov 15 |
65.00 |
0.75 |
117 |
0.6 |
5.67 (9.7%) |
| 5% Yield On WH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 16 |
62.50 |
0.25 |
26 |
1.0 |
3.17 (5.4%) |
| Nov 15 |
62.50 |
1.40 |
117 |
1.2 |
3.17 (5.4%) |
| 10% Yield On WH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 16 |
60.00 |
0.90 |
26 |
3.5 |
0.67 (1.1%) |
| Nov 15 |
60.00 |
2.30 |
117 |
2.0 |
0.67 (1.1%) |
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