TEX Dividend

TEREX dividend

Although TEX has a dividend of 0.10 with an ex-dividend date of Jun 7, you can sell covered calls on TEREX 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):

TEREX (TEX)
Bid Ask Last Change Volume P/E Market Cap
40.75 45.65 42.32 -0.57 1.1M 21 3.3B

TEX Dividend-Like Income Using Covered Calls

With TEX at 42.32, 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% 1.27 0.3
5% 2.12 0.6
10% 4.23 1.2

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 TEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 15 46.00 0.15 25 0.6 0.35 (0.8%)
Jul 20 47.00 0.35 60 0.6 1.35 (3.2%)
5% Yield On TEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 15 46.00 0.15 25 0.6 0.35 (0.8%)
Jul 20 47.00 0.35 60 0.6 1.35 (3.2%)
10% Yield On TEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 46.00 1.90 151 1.3 0.35 (0.8%)
Jan 18 46.00 2.85 242 1.2 0.35 (0.8%)

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Top 10 Open Interest For Jun 15 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.URBN dividend
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3.SPX dividend 8.HYG dividend   3.UVXY dividend
4.GE dividend 9.IWM dividend   4.GPS dividend
5.XLF dividend 10.EFA dividend   5.TXMD dividend

Want more examples? TEVA Dividend | TFI Dividend