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 12:55 PM ET):
| Wyndham Hotels & Resorts, Inc. (WH) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 74.12 |
74.28 |
74.20 |
+0.78 |
342K |
17 |
5.5B |
WH Dividend-Like Income Using Covered Calls
With WH at 74.20, 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% |
2.23 |
0.6 |
| 5% |
3.71 |
1.0 |
| 10% |
7.42 |
2.0 |
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 WH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
75.00 |
3.00 |
47 |
6.4 |
0.72 (1.0%) |
| Nov 21 |
75.00 |
1.60 |
19 |
8.4 |
0.72 (1.0%) |
| 5% Yield On WH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
75.00 |
3.00 |
47 |
6.4 |
0.72 (1.0%) |
| Nov 21 |
75.00 |
1.60 |
19 |
8.4 |
0.72 (1.0%) |
| 10% Yield On WH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
75.00 |
3.00 |
47 |
6.4 |
0.72 (1.0%) |
| Nov 21 |
75.00 |
1.60 |
19 |
8.4 |
0.72 (1.0%) |
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