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 Mon 4:16 PM ET):

TESLA INC (TSLA)
Bid Ask Last Change Volume P/E Market Cap
259.15 259.45 259.59 +0.81 6.2M - 44B

TSLA Dividend-Like Income Using Covered Calls

With TSLA at 259.59, 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% 7.79 2.1
5% 12.98 3.6
10% 25.96 7.1

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 TSLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 300.00 0.13 5 2.6 40.55 (15.6%)
Oct 26 322.50 0.26 12 2.2 63.05 (24.3%)
5% Yield On TSLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 295.00 0.22 5 4.4 35.55 (13.7%)
Oct 26 312.50 0.46 12 3.8 53.05 (20.4%)
10% Yield On TSLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 287.50 0.43 5 8.6 28.05 (10.8%)
Oct 26 302.50 0.86 12 7.2 43.05 (16.6%)

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