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 |
| 205.10 | 205.20 | 205.36 | -5.67 | 19.9M | -36.8 | 37B |
TSLA Dividend-Like Income Using Covered Calls
With TSLA at 205.36, 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% | 6.16 | 1.7 |
| 5% | 10.27 | 2.8 |
| 10% | 20.54 | 5.6 |
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 | |
| May 24 | 240.00 | 0.12 | 5 | 2.4 | 34.80 (16.9%) | |
| May 31 | 247.50 | 0.21 | 12 | 1.8 | 42.30 (20.6%) | |
| 5% Yield On TSLA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 24 | 237.50 | 0.17 | 5 | 3.4 | 32.30 (15.7%) | |
| May 31 | 242.50 | 0.34 | 12 | 2.8 | 37.30 (18.2%) | |
| 10% Yield On TSLA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 24 | 230.00 | 0.33 | 5 | 6.6 | 24.80 (12.1%) | |
| May 31 | 235.00 | 0.71 | 12 | 5.9 | 29.80 (14.5%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Jun 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | FXI dividend | 1. | BCRX dividend | |
| 2. | SPX dividend | 7. | BAC dividend | 2. | LB dividend | |
| 3. | EEM dividend | 8. | AAPL dividend | 3. | CARA dividend | |
| 4. | QQQ dividend | 9. | XLF dividend | 4. | NIO dividend | |
| 5. | EWZ dividend | 10. | VXX dividend | 5. | AMD dividend | |
Want more examples? TSG Dividend | TSLX Dividend
