TDOC Dividend Type Payments

Although TDOC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on TELADOC HEALTH INC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 3:30 PM ET):

TELADOC HEALTH INC (TDOC)
Bid Ask Last Change Volume P/E Market Cap
68.87 68.91 68.88 -1.07 835K - 4.9B

TDOC Dividend-Like Income Using Covered Calls

With TDOC at 68.88, 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% 2.07 0.6
5% 3.44 0.9
10% 6.89 1.9

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 TDOC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 95.00 0.25 30 0.8 26.09 (37.9%)
Jan 18 105.00 0.55 93 0.6 36.09 (52.4%)
5% Yield On TDOC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 90.00 0.40 30 1.3 21.09 (30.6%)
Jan 18 95.00 1.15 93 1.2 26.09 (37.9%)
10% Yield On TDOC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 85.00 0.75 30 2.5 16.09 (23.4%)
Jan 18 85.00 2.45 93 2.6 16.09 (23.4%)

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Want more examples? TDIV Dividend | TDS Dividend