TACT Dividend Type Payments

Although TACT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on TransAct Technologies, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:05 PM ET):

TransAct Technologies, Inc (TACT)
Bid Ask Last Change Volume P/E Market Cap
10.38 10.51 10.49 -0.11 9K 20 0.1B

TACT Dividend-Like Income Using Covered Calls

With TACT at 10.49, 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% 0.31 0.1
5% 0.52 0.1
10% 1.05 0.3

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 TACT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 12.50 0.05 22 0.2 1.99 (19.0%)
Apr 18 12.50 0.20 56 0.4 1.99 (19.0%)
5% Yield On TACT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 12.50 0.05 22 0.2 1.99 (19.0%)
Apr 18 12.50 0.20 56 0.4 1.99 (19.0%)
10% Yield On TACT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 12.50 0.20 56 0.4 1.99 (19.0%)
Jul 19 12.50 0.60 148 0.4 1.99 (19.0%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.AMRN dividend
2.EEM dividend 7.GE dividend   2.CRON dividend
3.SPY dividend 8.LLY dividend   3.FIT dividend
4.QQQ dividend 9.BAC dividend   4.IMGN dividend
5.FXI dividend 10.GLD dividend   5.ASND dividend

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