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 Thu 4:16 PM ET):
Warner Music Group Corp. - Class A (WMG) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
29.00 | 29.69 | 29.39 | +0.24 | 1.2M | 34 | 15B |
WMG Dividend-Like Income Using Covered Calls
With WMG at 29.39, 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% | 0.88 | 0.2 |
5% | 1.47 | 0.4 |
10% | 2.94 | 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 | |
Aug 15 | 30.00 | 0.95 | 44 | 2.2 | 0.31 (1.1%) | |
Oct 17 | 30.00 | 1.50 | 107 | 1.4 | 0.31 (1.1%) |
5% Yield On WMG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 30.00 | 0.95 | 44 | 2.2 | 0.31 (1.1%) | |
Oct 17 | 30.00 | 1.50 | 107 | 1.4 | 0.31 (1.1%) |
10% Yield On WMG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 30.00 | 0.95 | 44 | 2.2 | 0.31 (1.1%) | |
Oct 17 | 30.00 | 1.50 | 107 | 1.4 | 0.31 (1.1%) |
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Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
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2. | SLV dividend | 7. | AAPL dividend | 2. | COGT dividend | |
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Want more examples? WMB Dividend | WMK Dividend