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 Fri 1:15 PM ET):
| Tradeweb Markets Inc. - Class A (TW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 105.63 | 105.69 | 105.66 | +2.20 | 760K | 35 | 25B |
TW Dividend-Like Income Using Covered Calls
With TW at 105.66, 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% | 3.17 | 0.9 |
| 5% | 5.28 | 1.4 |
| 10% | 10.57 | 2.9 |
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 | |
| Jan 16 | 110.00 | 1.15 | 29 | 4.0 | 4.31 (4.1%) | |
| Apr 17 | 110.00 | 4.60 | 120 | 3.8 | 4.31 (4.1%) | |
| 5% Yield On TW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 110.00 | 1.15 | 29 | 4.0 | 4.31 (4.1%) | |
| Apr 17 | 110.00 | 4.60 | 120 | 3.8 | 4.31 (4.1%) | |
| 10% Yield On TW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 110.00 | 1.15 | 29 | 4.0 | 4.31 (4.1%) | |
| Apr 17 | 110.00 | 4.60 | 120 | 3.8 | 4.31 (4.1%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | EWTX dividend | |
| 2. | INTC dividend | 7. | NIO dividend | 2. | RKLB dividend | |
| 3. | TLT dividend | 8. | GLD dividend | 3. | ASTS dividend | |
| 4. | IBIT dividend | 9. | NFLX dividend | 4. | BW dividend | |
| 5. | SLV dividend | 10. | ASST dividend | 5. | RIVN dividend | |
Want more examples? TV Dividend | TWI Dividend
