TECH Dividend Type Payments
Although TECH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bio-Techne Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Bio-Techne Corp (TECH) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 58.82 |
60.02 |
59.58 |
+0.31 |
1.3M |
129 |
9.2B |
TECH Dividend-Like Income Using Covered Calls
With TECH at 59.58, 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% |
1.79 |
0.5 |
| 5% |
2.98 |
0.8 |
| 10% |
5.96 |
1.6 |
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 TECH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
60.00 |
2.50 |
38 |
6.5 |
0.00 (0.0%) |
| Jan 16 |
60.00 |
3.50 |
94 |
3.7 |
0.00 (0.0%) |
| 5% Yield On TECH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
60.00 |
2.50 |
38 |
6.5 |
0.00 (0.0%) |
| Jan 16 |
60.00 |
3.50 |
94 |
3.7 |
0.00 (0.0%) |
| 10% Yield On TECH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
60.00 |
2.50 |
38 |
6.5 |
0.00 (0.0%) |
| Jan 16 |
60.00 |
3.50 |
94 |
3.7 |
0.00 (0.0%) |
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