TXN Dividend

Although TXN has a dividend of 1.30 with an ex-dividend date of May 7, you can sell covered calls on Texas Instruments Incorporated 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):

Texas Instruments Incorporated (TXN)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
177.30	178.68	177.48	+2.23	5.1M	27	160B

TXN Dividend-Like Income Using Covered Calls

With TXN at 177.48, here's a table showing how big the annual "dividend" (i.e. 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%	5.32	1.5
5%	8.87	2.4
10%	17.75	4.9

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 TXN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 3	180.00	1.32	8	16.5	1.32 (0.7%)
May 10	180.00	1.83	15	12.2	1.32 (0.7%)

5% Yield On TXN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 3	180.00	1.32	8	16.5	1.32 (0.7%)
May 10	180.00	1.83	15	12.2	1.32 (0.7%)

10% Yield On TXN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 3	180.00	1.32	8	16.5	1.32 (0.7%)
May 10	180.00	1.83	15	12.2	1.32 (0.7%)

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

Top 10 Open Interest For May 17 Expiration				Top 5 High Yield
1.	IWM dividend	6.	EEM dividend	1.	WOLF dividend
2.	HYG dividend	7.	KWEB dividend	2.	ENVX dividend
3.	QQQ dividend	8.	SLV dividend	3.	FSLY dividend
4.	SPY dividend	9.	TSLA dividend	4.	NOVA dividend
5.	FXI dividend	10.	NVDA dividend	5.	COIN dividend

Want more examples? TXMD Dividend | TXRH Dividend