WSM Dividend Type Payments

Although WSM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Williams-Sonoma, Inc. (DE) 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):

Williams-Sonoma, Inc. (DE) (WSM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
151.59	168.00	160.56	+4.74	1.5M	18	19B

WSM Dividend-Like Income Using Covered Calls

With WSM at 160.56, 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%	4.82	1.3
5%	8.03	2.2
10%	16.06	4.4

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 WSM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	170.00	11.90	106	11.2	2.00 (1.2%)
May 16	170.00	1.75	15	11.7	2.00 (1.2%)

5% Yield On WSM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	170.00	11.90	106	11.2	2.00 (1.2%)
May 16	170.00	1.75	15	11.7	2.00 (1.2%)

10% Yield On WSM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	170.00	11.90	106	11.2	2.00 (1.2%)
May 16	170.00	1.75	15	11.7	2.00 (1.2%)

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Want more examples? WSFS Dividend | WSO Dividend