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 Wed 4:16 PM ET):
| Williams-Sonoma, Inc. (DE) (WSM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 187.50 | 195.34 | 195.49 | -4.14 | 1.3M | 23 | 24B |
WSM Dividend-Like Income Using Covered Calls
With WSM at 195.49, 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% | 5.86 | 1.6 |
| 5% | 9.77 | 2.7 |
| 10% | 19.55 | 5.4 |
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 | |
| Dec 19 | 195.00 | 13.70 | 52 | 25.7 | 0.00 (0.0%) | |
| Nov 21 | 195.00 | 9.80 | 24 | 39.4 | 0.00 (0.0%) | |
| 5% Yield On WSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 195.00 | 13.70 | 52 | 25.7 | 0.00 (0.0%) | |
| Nov 21 | 195.00 | 9.80 | 24 | 39.4 | 0.00 (0.0%) | |
| 10% Yield On WSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 195.00 | 13.70 | 52 | 25.7 | 0.00 (0.0%) | |
| Nov 21 | 195.00 | 9.80 | 24 | 39.4 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | INTC dividend | 1. | IREN dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | GHRS dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | ENVX dividend | |
| 4. | SLV dividend | 9. | HYG dividend | 4. | JOBY dividend | |
| 5. | GLD dividend | 10. | QQQ dividend | 5. | SOUN dividend | |
Want more examples? WSFS Dividend | WSO Dividend
