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 Fri 4:16 PM ET):

Warner Music Group Corp. - Class A (WMG)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
25.99	33.14	32.40	+0.85	978K	36	16B

WMG Dividend-Like Income Using Covered Calls

With WMG at 32.40, 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%	0.97	0.3
5%	1.62	0.4
10%	3.24	0.9

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
May 17	33.00	0.85	22	3.2	0.00 (0.0%)
Jun 21	33.00	1.30	57	2.0	0.00 (0.0%)

5% Yield On WMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	33.00	0.85	22	3.2	0.00 (0.0%)
Jun 21	33.00	1.30	57	2.0	0.00 (0.0%)

10% Yield On WMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	33.00	0.85	22	3.2	0.00 (0.0%)
Jun 21	33.00	1.30	57	2.0	0.00 (0.0%)

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Want more examples? WMB Dividend | WMK Dividend