TSN Dividend

TYSON FOODS dividend

Although TSN has a dividend of 0.30 with an ex-dividend date of Aug 30, you can sell covered calls on TYSON FOODS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

TYSON FOODS (TSN)
Bid Ask Last Change Volume P/E Market Cap
59.15 60.76 60.00 +0.42 2.4M 3.9 22B

TSN Dividend-Like Income Using Covered Calls

With TSN at 60.00, 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% 1.80 0.5
5% 3.00 0.8
10% 6.00 1.6

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 TSN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 61.00 0.05 3 1.7 0.24 (0.4%)
Aug 24 62.00 0.05 10 0.5 1.24 (2.1%)
5% Yield On TSN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 61.00 0.05 3 1.7 0.24 (0.4%)
Aug 24 61.50 0.15 10 1.5 0.74 (1.2%)
10% Yield On TSN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 61.00 0.05 3 1.7 0.24 (0.4%)
Aug 24 61.00 0.30 10 3.0 0.24 (0.4%)

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

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.NVDA dividend
2.EEM dividend 7.FB dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.GLD dividend   4.GDS dividend
5.BAC dividend 10.AABA dividend   5.AMAT dividend

Want more examples? TSM Dividend | TSOYB Dividend