TGT Dividend Type Payments

Target Corp dividend

Although TGT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Target Corp 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):

Target Corp (TGT)
Bid Ask Last Change Volume P/E Market Cap
66.67 66.82 66.68 -1.11 5.8M - 0.0B

TGT Dividend-Like Income Using Covered Calls

With TGT at 66.68, 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% 2.00 0.5
5% 3.33 0.9
10% 6.67 1.8

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 TGT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 72.00 0.05 9 0.6 5.18 (7.8%)
Dec 28 72.00 0.10 16 0.6 5.18 (7.8%)
5% Yield On TGT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 71.00 0.10 9 1.1 4.18 (6.3%)
Dec 28 71.50 0.15 16 0.9 4.68 (7.0%)
10% Yield On TGT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 70.00 0.19 9 2.1 3.18 (4.8%)
Dec 28 70.00 0.34 16 2.1 3.18 (4.8%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.VXX dividend   4. dividend
5.IWM dividend 10.BAC dividend   5. dividend

Want more examples? TGS Dividend | TGTX Dividend