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 Mon 4:16 PM ET):
| Transdigm Group Incorporated (TDG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 1,265.00 | 1,325.00 | 1,301.79 | +24.96 | 301K | 40 | 72B |
TDG Dividend-Like Income Using Covered Calls
With TDG at 1,301.79, 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 | |
| May 15 | 1320.00 | 81.00 | 145 | 52.4 | 0.00 (0.0%) | |
| Jan 16 | 1320.00 | 17.20 | 26 | 46.9 | 0.00 (0.0%) | |
| 5% Yield On TDG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 1320.00 | 81.00 | 145 | 52.4 | 0.00 (0.0%) | |
| Jan 16 | 1320.00 | 17.20 | 26 | 46.9 | 0.00 (0.0%) | |
| 10% Yield On TDG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 1320.00 | 81.00 | 145 | 52.4 | 0.00 (0.0%) | |
| Jan 16 | 1320.00 | 17.20 | 26 | 46.9 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | OMER dividend | |
| 2. | INTC dividend | 7. | NIO dividend | 2. | DAWN dividend | |
| 3. | TLT dividend | 8. | GLD dividend | 3. | EOSE dividend | |
| 4. | IBIT dividend | 9. | NFLX dividend | 4. | PGR dividend | |
| 5. | SLV dividend | 10. | ASST dividend | 5. | IONQ dividend | |
Want more examples? TDC Dividend | TDIV Dividend
