TR Dividend Type Payments
Although TR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Tootsie Roll Industries, Inc. 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):
| Tootsie Roll Industries, Inc. (TR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 36.42 | 40.45 | 38.66 | -0.08 | 293K | 31 | 2.7B |
TR Dividend-Like Income Using Covered Calls
With TR at 38.66, 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% | 1.16 | 0.3 |
| 5% | 1.93 | 0.5 |
| 10% | 3.87 | 1.1 |
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 TR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 42.50 | 0.15 | 36 | 0.4 | 2.05 (5.3%) | |
| Dec 19 | 42.50 | 0.50 | 127 | 0.4 | 2.05 (5.3%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | ATYR dividend | |
| 2. | PCG dividend | 7. | FXI dividend | 2. | IREN dividend | |
| 3. | IWM dividend | 8. | QQQ dividend | 3. | KSS dividend | |
| 4. | EEM dividend | 9. | IBIT dividend | 4. | VKTX dividend | |
| 5. | SPY dividend | 10. | KWEB dividend | 5. | BBAI dividend | |
Want more examples? TQQQ Dividend | TRAK Dividend
