TSLA Dividend Type Payments

TESLA INC dividend

Although TSLA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on TESLA 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):

TESLA INC (TSLA)
Bid Ask Last Change Volume P/E Market Cap
305.10 305.49 305.50 -29.95 18.8M - 57B

TSLA Dividend-Like Income Using Covered Calls

With TSLA at 305.50, 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% 9.17 2.5
5% 15.28 4.2
10% 30.55 8.4

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 TSLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 380.00 0.24 8 3.0 74.51 (24.4%)
Aug 31 387.50 0.40 15 2.7 82.01 (26.8%)
5% Yield On TSLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 367.50 0.38 8 4.8 62.01 (20.3%)
Aug 31 375.00 0.70 15 4.7 69.51 (22.8%)
10% Yield On TSLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 355.00 0.70 8 8.8 49.51 (16.2%)
Aug 31 360.00 1.39 15 9.3 54.51 (17.8%)

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Want more examples? TSG Dividend | TSLX Dividend