TDS Dividend Type Payments

TELEPHONE & DATA SYSTEMS dividend

Although TDS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on TELEPHONE & DATA SYSTEMS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:30 AM ET):

TELEPHONE & DATA SYSTEMS (TDS)
Bid Ask Last Change Volume P/E Market Cap
30.21 30.23 30.22 +0.50 180K 19 3.3B

TDS Dividend-Like Income Using Covered Calls

With TDS at 30.22, 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% 0.91 0.2
5% 1.51 0.4
10% 3.02 0.8

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 TDS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 35.00 0.30 95 0.3 4.77 (15.8%)
Feb 15 35.00 0.60 186 0.3 4.77 (15.8%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
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Want more examples? TDOC Dividend | TDTF Dividend