TDOC Dividend Type Payments

Although TDOC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Teladoc Health, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Teladoc Health, Inc. (TDOC)
Bid Ask Last Change Volume P/E Market Cap
7.97 8.03 8.05 +0.48 9.4M - 1.3B

TDOC Dividend-Like Income Using Covered Calls

With TDOC at 8.05, 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% 0.24 0.1
5% 0.40 0.1
10% 0.81 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 TDOC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 1 10.00 0.24 37 0.6 1.97 (24.5%)
Jul 3 10.00 0.02 8 0.3 1.97 (24.5%)
5% Yield On TDOC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 1 10.00 0.24 37 0.6 1.97 (24.5%)
Jul 3 10.00 0.02 8 0.3 1.97 (24.5%)
10% Yield On TDOC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 1 10.00 0.24 37 0.6 1.97 (24.5%)
Jul 3 10.00 0.02 8 0.3 1.97 (24.5%)

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

 
Top 10 Open Interest For Jul 18 Expiration     Top 5 High Yield
1.NVDA dividend 6.TSLA dividend   1.COGT dividend
2.SLV dividend 7.IWM dividend   2.CAPR dividend
3.SPY dividend 8.AAPL dividend   3.TDOC dividend
4.GLD dividend 9.FXI dividend   4.CRWV dividend
5.TLT dividend 10.CLSK dividend   5.TEM dividend

Want more examples? TDIV Dividend | TDS Dividend