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 Fri 4:16 PM ET):
| Bio-Techne Corp (TECH) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 71.83 |
74.65 |
73.36 |
+0.38 |
642K |
70 |
12B |
TECH Dividend-Like Income Using Covered Calls
With TECH at 73.36, 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% |
2.20 |
0.6 |
| 5% |
3.67 |
1.0 |
| 10% |
7.34 |
2.0 |
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 TECH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
75.00 |
2.65 |
36 |
7.4 |
0.35 (0.5%) |
| Oct 18 |
75.00 |
0.35 |
8 |
4.4 |
0.35 (0.5%) |
| 5% Yield On TECH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
75.00 |
2.65 |
36 |
7.4 |
0.35 (0.5%) |
| Oct 18 |
75.00 |
0.35 |
8 |
4.4 |
0.35 (0.5%) |
| 10% Yield On TECH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
75.00 |
2.65 |
36 |
7.4 |
0.35 (0.5%) |
| Oct 18 |
75.00 |
0.35 |
8 |
4.4 |
0.35 (0.5%) |
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