TTS Dividend Type Payments

Although TTS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Tile Shop Holdings, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:55 AM ET):

Tile Shop Holdings, Inc (TTS)
Bid Ask Last Change Volume P/E Market Cap
6.23 6.24 6.23 +0.10 52K 31 0.3B

TTS Dividend-Like Income Using Covered Calls

With TTS at 6.23, 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% 0.19 0.1
5% 0.31 0.1
10% 0.62 0.2

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 TTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 7.50 0.10 53 0.2 1.26 (20.2%)
Aug 16 7.50 0.35 144 0.2 1.26 (20.2%)
5% Yield On TTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 7.50 0.10 53 0.2 1.26 (20.2%)
Aug 16 7.50 0.35 144 0.2 1.26 (20.2%)
10% Yield On TTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 7.50 0.10 53 0.2 1.26 (20.2%)
Aug 16 7.50 0.35 144 0.2 1.26 (20.2%)

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

 
Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.NBEV dividend
2.EEM dividend 7.AAPL dividend   2.LULU dividend
3.SPX dividend 8.BMY dividend   3.SPWR dividend
4.QQQ dividend 9.EWZ dividend   4.BB dividend
5.FXI dividend 10.IWM dividend   5.CRON dividend

Want more examples? TTPH Dividend | TTT Dividend