Western Asset Premier Bond Fund
WEAFinancial Services · Stock · monthly payer
Forward Yield
8.36%
Annual Dividend
$0.84
Payout Ratio
101%
5-Yr Growth
1.2%
Ex-Date
Sep 23, 2026
Frequency
Monthly
Summary
As of September 2026, Western Asset Premier Bond Fund (WEA) yields 8.36% ($0.84 per share annually), with a blended fair-value estimate of $17.26 — +71% upside, so it screens as undervalued. Dividend safety grade: C (65/100).
Is WEA a good dividend stock?
Yes, with caveatsWestern Asset Premier Bond Fund (WEA) pays a monthly dividend yielding 8.36% ($0.84/yr), with 0 years of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
Risks
- Cut its dividend in 2018
- Elevated payout ratio (101%)
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 8.36%
- Payout Ratio
- 101%
- Annual Dividend
- $0.84
- 5-Yr Avg Growth
- 1.2%
- Ex-Dividend Date
- Sep 23, 2026
- Years of Growth
- 0
- Frequency
- monthly
- Beta
- 0.49
- Market Cap
- $119.2M
- P/E Ratio
- 12.1
- 5-Yr Total Return
- -28%
- 52-Week Range
- $10.00 – $11.42
- Dividend Safety
- C · 65/100
- Ever Cut?
- Yes (2018)
Frequently Asked Questions
WEA Price — Last 12 Months
Daily close
Price Return
1 Year
-10%
3 Years
+4%
5 Years
-28%
52-Week Range
$10.00 – $11.42
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is WEA worth?
Undervaluedmedium confidenceOur blended fair-value estimate for Western Asset Premier Bond Fund is $17.26 per share, versus a market price of $10.07. That implies 71% of upside — a margin of safety of about 42%.
Fair Value
$17.26
Current Price
$10.07
Upside
+71%
Margin of Safety
42%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model 1.2% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.0% discount rate (CAPM), 1.2% stage-1 growth, 2.5% terminal growth, $0.83 EPS, $0.84 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
WEA Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Aug 24, 2026 | — | $0.0700 | regular |
| Jul 24, 2026 | — | $0.0700 | regular |
| Jun 23, 2026 | — | $0.0700 | regular |
| May 21, 2026 | — | $0.0700 | regular |
| Apr 23, 2026 | — | $0.0700 | regular |
| Mar 24, 2026 | — | $0.0700 | regular |
| Feb 20, 2026 | — | $0.0700 | regular |
| Jan 23, 2026 | — | $0.0700 | regular |
| Dec 23, 2025 | — | $0.0700 | regular |
| Nov 20, 2025 | — | $0.0700 | regular |
| Oct 24, 2025 | — | $0.0700 | regular |
| Sep 23, 2025 | — | $0.0700 | regular |
| Aug 22, 2025 | — | $0.0700 | regular |
| Jul 24, 2025 | — | $0.0700 | regular |
Income Calculator
At $0.84 / yr per share
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