WTS Dividend

Watts Water Technologies, Inc dividend

Although WTS has a dividend of 0.21 with an ex-dividend date of Feb 28, you can sell covered calls on Watts Water Technologies, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:10 PM ET):

Watts Water Technologies, Inc (WTS)
Bid Ask Last Change Volume P/E Market Cap
80.24 80.34 80.34 -0.43 50K 30 2.7B

WTS Dividend-Like Income Using Covered Calls

With WTS at 80.34, 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% 2.41 0.7
5% 4.02 1.1
10% 8.03 2.2

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 WTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 85.00 0.35 25 1.4 4.66 (5.8%)
Jun 21 90.00 1.05 123 0.9 9.66 (12.0%)
5% Yield On WTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 85.00 0.35 25 1.4 4.66 (5.8%)
Jun 21 85.00 2.20 123 1.8 4.66 (5.8%)
10% Yield On WTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 80.00 1.90 25 6.2 0.00 (0.0%)
Jun 21 80.00 4.50 123 3.4 0.00 (0.0%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ROKU dividend
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3.SPY dividend 8.BAC dividend   3.IQ dividend
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5.FXI dividend 10.GLD dividend   5.VIPS dividend

Want more examples? WTR Dividend | WTTR Dividend