TCPC Dividend Type Payments
Although TCPC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BlackRock TCP Capital Corp. - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:15 AM ET):
| BlackRock TCP Capital Corp. - Closed End Fund (TCPC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 5.01 |
5.02 |
5.01 |
+0.04 |
273K |
- |
0.4B |
TCPC Dividend-Like Income Using Covered Calls
With TCPC at 5.01, 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% |
0.15 |
0.0 |
| 5% |
0.25 |
0.1 |
| 10% |
0.50 |
0.1 |
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 TCPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
5.00 |
0.10 |
17 |
0.5 |
0.00 (0.0%) |
| Mar 20 |
5.00 |
0.05 |
45 |
0.1 |
0.00 (0.0%) |
| 5% Yield On TCPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
5.00 |
0.10 |
17 |
0.5 |
0.00 (0.0%) |
| Aug 21 |
5.00 |
0.30 |
199 |
0.1 |
0.00 (0.0%) |
| 10% Yield On TCPC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
5.00 |
0.10 |
17 |
0.5 |
0.00 (0.0%) |
| Aug 21 |
5.00 |
0.30 |
199 |
0.1 |
0.00 (0.0%) |
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