THC Dividend Type Payments
Although THC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Tenet Healthcare Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Tenet Healthcare Corporation (THC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 186.58 | 205.00 | 200.00 | +0.87 | 761K | 13 | 18B |
THC Dividend-Like Income Using Covered Calls
With THC at 200.00, here's a table showing how big the annual "dividend" (i.e. 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% | 6.00 | 1.6 |
| 5% | 10.00 | 2.7 |
| 10% | 20.00 | 5.5 |
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 THC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 210.00 | 8.90 | 64 | 13.9 | 5.00 (2.5%) | |
| Nov 21 | 210.00 | 5.70 | 36 | 15.8 | 5.00 (2.5%) | |
| 5% Yield On THC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 210.00 | 8.90 | 64 | 13.9 | 5.00 (2.5%) | |
| Nov 21 | 210.00 | 5.70 | 36 | 15.8 | 5.00 (2.5%) | |
| 10% Yield On THC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 210.00 | 8.90 | 64 | 13.9 | 5.00 (2.5%) | |
| Nov 21 | 210.00 | 5.70 | 36 | 15.8 | 5.00 (2.5%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | GLD dividend | 1. | CIFR dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | INBX dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | USAR dividend | |
| 4. | SLV dividend | 9. | INTC dividend | 4. | BHVN dividend | |
| 5. | HYG dividend | 10. | QQQ dividend | 5. | IREN dividend | |
Want more examples? TGTX Dividend | THD Dividend
