TSCO Dividend

Tractor Supply Company dividend

Although TSCO has a dividend of 0.23 with an ex-dividend date of Nov 24, you can sell covered calls on Tractor Supply Company 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):

Tractor Supply Company (TSCO)
Bid Ask Last Change Volume P/E Market Cap
55.00 57.31 55.42 -0.76 4.9M 27 30B

TSCO Dividend-Like Income Using Covered Calls

With TSCO at 55.42, 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% 1.66 0.5
5% 2.77 0.8
10% 5.54 1.5

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 TSCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 58.00 0.35 22 1.6 0.69 (1.2%)
Dec 12 58.00 0.15 29 0.5 0.69 (1.2%)
5% Yield On TSCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 58.00 0.35 22 1.6 0.69 (1.2%)
Nov 21 58.00 0.10 8 1.3 0.69 (1.2%)
10% Yield On TSCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 58.00 0.35 22 1.6 0.69 (1.2%)
Jan 16 58.00 1.40 64 2.2 0.69 (1.2%)

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