TSS Dividend Type Payments

Total System Services, Inc dividend

Although TSS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Total System Services, 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):

Total System Services, Inc (TSS)
Bid Ask Last Change Volume P/E Market Cap
89.84 92.81 92.78 +0.68 900K 25 17B

TSS Dividend-Like Income Using Covered Calls

With TSS at 92.78, 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% 2.78 0.8
5% 4.64 1.3
10% 9.28 2.5

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 TSS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 95.00 0.75 29 2.6 2.19 (2.4%)
May 17 100.00 0.95 92 1.0 7.19 (7.7%)
5% Yield On TSS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 95.00 0.75 29 2.6 2.19 (2.4%)
May 17 95.00 2.50 92 2.7 2.19 (2.4%)
10% Yield On TSS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 95.00 0.75 29 2.6 2.19 (2.4%)
May 17 95.00 2.50 92 2.7 2.19 (2.4%)

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