TDG Dividend Type Payments

TRANSDIGM GROUP dividend

Although TDG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on TRANSDIGM GROUP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

TRANSDIGM GROUP (TDG)
Bid Ask Last Change Volume P/E Market Cap
351.68 363.08 356.54 +0.51 249K 26 19B

TDG Dividend-Like Income Using Covered Calls

With TDG at 356.54, 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% 10.70 2.9
5% 17.83 4.9
10% 35.65 9.8

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 TDG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 380.00 1.15 39 2.9 16.92 (4.7%)
Nov 16 390.00 4.30 95 4.5 26.92 (7.6%)
5% Yield On TDG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 370.00 3.10 39 7.9 6.92 (1.9%)
Nov 16 380.00 7.10 95 7.5 16.92 (4.7%)
10% Yield On TDG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 370.00 9.90 95 10.4 6.92 (1.9%)
Jan 18 368.00 16.10 158 10.2 4.92 (1.4%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
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3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.FB dividend   4.CGC dividend
5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? TDC Dividend | TDIV Dividend