TSCO Dividend Type Payments

TRACTOR SUPPLY dividend

Although TSCO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on TRACTOR SUPPLY to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:20 PM ET):

TRACTOR SUPPLY (TSCO)
Bid Ask Last Change Volume P/E Market Cap
87.35 87.44 87.40 +0.54 715K 23 11B

TSCO Dividend-Like Income Using Covered Calls

With TSCO at 87.40, 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% 2.62 0.7
5% 4.37 1.2
10% 8.74 2.4

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 TSCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 100.00 0.05 5 1.0 12.56 (14.4%)
Nov 2 100.00 0.15 12 1.3 12.56 (14.4%)
5% Yield On TSCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 99.00 0.10 5 2.0 11.56 (13.2%)
Nov 2 100.00 0.15 12 1.3 12.56 (14.4%)
10% Yield On TSCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 98.00 0.15 5 3.0 10.56 (12.1%)
Nov 2 98.00 0.30 12 2.5 10.56 (12.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.AMD dividend
2.EWZ dividend 7.VXX dividend   2.SNAP dividend
3.EEM dividend 8.FXI dividend   3.UVXY dividend
4.PBR dividend 9.IWM dividend   4.TWTR dividend
5.QQQ dividend 10.BAC dividend   5.AKS dividend

Want more examples? TS Dividend | TSE Dividend