WPP Dividend Type Payments

WPP PLC dividend

Although WPP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on WPP PLC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:10 AM ET):

WPP PLC (WPP)
Bid Ask Last Change Volume P/E Market Cap
83.61 83.66 83.69 +0.77 38K 9.0 21B

WPP Dividend-Like Income Using Covered Calls

With WPP at 83.69, 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% 2.51 0.7
5% 4.18 1.1
10% 8.37 2.3

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 WPP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 85.00 1.50 32 4.7 1.34 (1.6%)
Oct 19 85.00 1.90 60 3.2 1.34 (1.6%)
5% Yield On WPP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 85.00 1.50 32 4.7 1.34 (1.6%)
Oct 19 85.00 1.90 60 3.2 1.34 (1.6%)
10% Yield On WPP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 85.00 1.50 32 4.7 1.34 (1.6%)
Oct 19 85.00 1.90 60 3.2 1.34 (1.6%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.SPY dividend 6.GE dividend   1.MOMO dividend
2.EEM dividend 7.GLD dividend   2.LB dividend
3.SPX dividend 8.FB dividend   3.GPS dividend
4.QQQ dividend 9.IWM dividend   4.AKRX dividend
5.XLF dividend 10.GDX dividend   5.UVXY dividend

Want more examples? WPM Dividend | WPRT Dividend