TNDM Dividend Type Payments
Although TNDM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Tandem Diabetes Care, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:40 AM ET):
| Tandem Diabetes Care, Inc. (TNDM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 20.61 | 20.65 | 20.63 | +0.65 | 279K | - | 2.6B |
TNDM Dividend-Like Income Using Covered Calls
With TNDM at 20.63, 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% | 0.62 | 0.2 |
| 5% | 1.03 | 0.3 |
| 10% | 2.06 | 0.6 |
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 TNDM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 21.00 | 2.55 | 106 | 2.4 | 0.35 (1.7%) | |
| May 16 | 21.00 | 0.65 | 15 | 4.3 | 0.35 (1.7%) | |
| 5% Yield On TNDM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 21.00 | 2.55 | 106 | 2.4 | 0.35 (1.7%) | |
| May 16 | 21.00 | 0.65 | 15 | 4.3 | 0.35 (1.7%) | |
| 10% Yield On TNDM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 21.00 | 2.55 | 106 | 2.4 | 0.35 (1.7%) | |
| May 16 | 21.00 | 0.65 | 15 | 4.3 | 0.35 (1.7%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | WOLF dividend | |
| 2. | SPY dividend | 7. | FXI dividend | 2. | QBTS dividend | |
| 3. | TLT dividend | 8. | GLD dividend | 3. | HTZ dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | QUBT dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | RIOT dividend | |
Want more examples? TNC Dividend | TNET Dividend
