TA Dividend Type Payments

TRAVELCENTERS of AMERICA dividend

Although TA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on TRAVELCENTERS of AMERICA 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):

TRAVELCENTERS of AMERICA (TA)
Bid Ask Last Change Volume P/E Market Cap
4.50 4.70 4.60 +0.10 289K 6.2 0.2B

TA Dividend-Like Income Using Covered Calls

With TA at 4.60, 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% 0.14 0.0
5% 0.23 0.1
10% 0.46 0.1

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 TA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 5.00 0.10 29 0.3 0.30 (6.5%)
Sep 21 5.00 0.15 64 0.2 0.30 (6.5%)
5% Yield On TA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 5.00 0.10 29 0.3 0.30 (6.5%)
Sep 21 5.00 0.15 64 0.2 0.30 (6.5%)
10% Yield On TA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 5.00 0.10 29 0.3 0.30 (6.5%)
Sep 21 5.00 0.15 64 0.2 0.30 (6.5%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.TWTR dividend
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3.BAC dividend 8.FXI dividend   3.NXPI dividend
4.QQQ dividend 9.EWZ dividend   4.UVXY dividend
5.XLF dividend 10.IWM dividend   5.AKRX dividend

Want more examples? T Dividend | TACO Dividend