TCPC Dividend Type Payments
Although TCPC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BlackRock TCP Capital Corp. - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
BlackRock TCP Capital Corp. - Closed End Fund (TCPC) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
9.90 |
10.03 |
9.93 |
-0.09 |
349K |
5.4 |
0.6B |
TCPC Dividend-Like Income Using Covered Calls
With TCPC at 9.93, 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% |
0.30 |
0.1 |
5% |
0.50 |
0.1 |
10% |
0.99 |
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 TCPC Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 21 |
10.00 |
0.25 |
58 |
0.4 |
0.00 (0.0%) |
5% Yield On TCPC Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 21 |
10.00 |
0.25 |
58 |
0.4 |
0.00 (0.0%) |
10% Yield On TCPC Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 21 |
10.00 |
0.25 |
58 |
0.4 |
0.00 (0.0%) |
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