TPX Dividend Type Payments

TEMPUR SEALY INTL dividend

Although TPX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on TEMPUR SEALY INTL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:10 PM ET):

TEMPUR SEALY INTL (TPX)
Bid Ask Last Change Volume P/E Market Cap
58.62 58.71 58.69 +1.62 536K 22 3.1B

TPX Dividend-Like Income Using Covered Calls

With TPX at 58.69, 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% 1.76 0.5
5% 2.93 0.8
10% 5.87 1.6

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 TPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 67.50 0.35 32 1.1 8.79 (15.0%)
Oct 19 70.00 0.30 60 0.5 11.29 (19.2%)
5% Yield On TPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 67.50 0.35 32 1.1 8.79 (15.0%)
Oct 19 65.00 1.15 60 1.9 6.29 (10.7%)
10% Yield On TPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 65.00 0.65 32 2.0 6.29 (10.7%)
Oct 19 65.00 1.15 60 1.9 6.29 (10.7%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.SPY dividend 6.GE dividend   1.MOMO dividend
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5.XLF dividend 10.GDX dividend   5.AKRX dividend

Want more examples? TPVG Dividend | TPYP Dividend