WSC Dividend
Although WSC has a dividend of 0.07 with an ex-dividend date of Jun 4, you can sell covered calls on WillScot Holdings Corporation - 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):
| WillScot Holdings Corporation - Class A (WSC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 20.56 |
28.11 |
27.30 |
+1.67 |
3.4M |
171 |
5.1B |
WSC Dividend-Like Income Using Covered Calls
With WSC at 27.30, 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% |
0.82 |
0.2 |
| 5% |
1.37 |
0.4 |
| 10% |
2.73 |
0.7 |
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 WSC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
30.00 |
0.15 |
15 |
1.0 |
1.89 (6.9%) |
| Oct 17 |
30.00 |
2.45 |
169 |
1.4 |
1.89 (6.9%) |
| 5% Yield On WSC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
30.00 |
0.15 |
15 |
1.0 |
1.89 (6.9%) |
| Oct 17 |
30.00 |
2.45 |
169 |
1.4 |
1.89 (6.9%) |
| 10% Yield On WSC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
30.00 |
0.15 |
15 |
1.0 |
1.89 (6.9%) |
| Oct 17 |
30.00 |
2.45 |
169 |
1.4 |
1.89 (6.9%) |
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