TDG Dividend Type Payments

Although TDG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Transdigm Group 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):

Transdigm Group Incorporated (TDG)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
1,359.61	1,549.38	1,468.43	+7.75	374K	49	82B

TDG Dividend-Like Income Using Covered Calls

With TDG at 1,468.43, 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%	0.03	0.0
5%	0.05	0.0
10%	0.10	0.0

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 TDG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	1560.00	32.00	78	41.0	10.62 (0.7%)
Jul 18	1550.00	15.90	50	31.8	0.62 (0.0%)

5% Yield On TDG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	1560.00	32.00	78	41.0	10.62 (0.7%)
Jul 18	1550.00	15.90	50	31.8	0.62 (0.0%)

10% Yield On TDG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	1560.00	32.00	78	41.0	10.62 (0.7%)
Dec 19	1545.00	93.10	204	43.5	0.00 (0.0%)

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Want more examples? TDC Dividend | TDIV Dividend