TSCO Dividend

TRACTOR SUPPLY dividend

Although TSCO has a dividend of 0.31 with an ex-dividend date of Aug 24, 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 Fri 4:16 PM ET):

TRACTOR SUPPLY (TSCO)
Bid Ask Last Change Volume P/E Market Cap
79.46 83.25 80.51 +0.87 1.2M 21 10B

TSCO Dividend-Like Income Using Covered Calls

With TSCO at 80.51, 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% 2.42 0.7
5% 4.03 1.1
10% 8.05 2.2

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
Aug 31 85.00 0.10 15 0.7 1.75 (2.2%)
Sep 7 85.00 0.20 22 0.9 1.75 (2.2%)
5% Yield On TSCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 31 84.50 0.20 15 1.3 1.25 (1.6%)
Sep 7 84.00 0.35 22 1.6 0.75 (0.9%)
10% Yield On TSCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 14 83.50 0.65 29 2.2 0.25 (0.3%)
Sep 28 84.00 0.95 43 2.2 0.75 (0.9%)

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

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
2.SPY dividend 7.GLD dividend   2.LB dividend
3.SPX dividend 8.FB dividend   3.AKRX dividend
4.QQQ dividend 9.IWM dividend   4.UVXY dividend
5.XLF dividend 10.GDX dividend   5.GPS dividend

Want more examples? TS Dividend | TSE Dividend