WMG Dividend Type Payments

Although WMG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Warner Music Group Corp. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Warner Music Group Corp. - Class A (WMG)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
27.44	29.05	28.20	-0.24	2.9M	41	15B

WMG Dividend-Like Income Using Covered Calls

With WMG at 28.20, 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%	0.85	0.2
5%	1.41	0.4
10%	2.82	0.8

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 WMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	29.00	0.60	73	0.8	0.00 (0.0%)
Jul 17	29.00	1.05	164	0.6	0.00 (0.0%)

5% Yield On WMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	29.00	0.60	73	0.8	0.00 (0.0%)
Jul 17	29.00	1.05	164	0.6	0.00 (0.0%)

10% Yield On WMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	30.00	0.80	73	1.1	0.95 (3.4%)
Feb 20	29.00	0.30	17	1.5	0.00 (0.0%)

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Want more examples? WMB Dividend | WMK Dividend