TW Dividend Type Payments
Although TW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Tradeweb Markets Inc. - Class A 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):
Tradeweb Markets Inc. - Class A (TW) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
136.29 | 144.00 | 137.43 | -2.62 | 1.2M | 58 | 33B |
TW Dividend-Like Income Using Covered Calls
With TW at 137.43, 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% | 4.12 | 1.1 |
5% | 6.87 | 1.9 |
10% | 13.74 | 3.8 |
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 TW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 145.00 | 6.10 | 131 | 4.7 | 1.00 (0.7%) | |
Jul 18 | 145.00 | 1.60 | 40 | 4.0 | 1.00 (0.7%) |
5% Yield On TW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 145.00 | 6.10 | 131 | 4.7 | 1.00 (0.7%) | |
Jul 18 | 145.00 | 1.60 | 40 | 4.0 | 1.00 (0.7%) |
10% Yield On TW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 145.00 | 6.10 | 131 | 4.7 | 1.00 (0.7%) | |
Jul 18 | 145.00 | 1.60 | 40 | 4.0 | 1.00 (0.7%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | GLD dividend | 1. | ALT dividend | |
2. | SPY dividend | 7. | EEM dividend | 2. | RH dividend | |
3. | SLV dividend | 8. | TSLA dividend | 3. | RCAT dividend | |
4. | QQQ dividend | 9. | FXI dividend | 4. | DYN dividend | |
5. | IWM dividend | 10. | TLT dividend | 5. | KSS dividend |
Want more examples? TV Dividend | TWI Dividend