TSLA Dividend Type Payments
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 |
| 253.40 | 253.49 | 253.50 | +8.42 | 10.9M | -38.9 | 44B |
TSLA Dividend-Like Income Using Covered Calls
With TSLA at 253.50, 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% | 7.61 | 2.1 |
| 5% | 12.68 | 3.5 |
| 10% | 25.35 | 6.9 |
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 | |
| Jul 19 | 290.00 | 0.11 | 5 | 2.2 | 36.51 (14.4%) | |
| Jul 26 | 320.00 | 0.30 | 12 | 2.5 | 66.51 (26.2%) | |
| 5% Yield On TSLA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 19 | 280.00 | 0.28 | 5 | 5.6 | 26.51 (10.5%) | |
| Jul 26 | 310.00 | 0.49 | 12 | 4.1 | 56.51 (22.3%) | |
| 10% Yield On TSLA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 19 | 275.00 | 0.44 | 5 | 8.8 | 21.51 (8.5%) | |
| Jul 26 | 300.00 | 0.84 | 12 | 7.0 | 46.51 (18.3%) | |
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| Top 10 Open Interest For Jul 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | OIH dividend | 1. | BFR dividend | |
| 2. | SPX dividend | 7. | FXI dividend | 2. | SKX dividend | |
| 3. | EEM dividend | 8. | USO dividend | 3. | OSTK dividend | |
| 4. | QQQ dividend | 9. | AAPL dividend | 4. | NFLX dividend | |
| 5. | IWM dividend | 10. | EWZ dividend | 5. | CRWD dividend | |
Want more examples? TSG Dividend | TSLX Dividend
