TW Dividend
Although TW has a dividend of 0.12 with an ex-dividend date of Jun 2, 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 Thu 4:16 PM ET):
| Tradeweb Markets Inc. - Class A (TW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 138.00 | 144.89 | 143.50 | +3.49 | 947K | 58 | 33B |
TW Dividend-Like Income Using Covered Calls
With TW at 143.50, 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% | 4.31 | 1.2 |
| 5% | 7.18 | 2.0 |
| 10% | 14.35 | 3.9 |
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 | |
| Oct 17 | 145.00 | 9.00 | 156 | 5.8 | 0.11 (0.1%) | |
| Jul 18 | 145.00 | 3.50 | 65 | 5.4 | 0.11 (0.1%) | |
| 5% Yield On TW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 145.00 | 9.00 | 156 | 5.8 | 0.11 (0.1%) | |
| Jul 18 | 145.00 | 3.50 | 65 | 5.4 | 0.11 (0.1%) | |
| 10% Yield On TW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 145.00 | 9.00 | 156 | 5.8 | 0.11 (0.1%) | |
| Jul 18 | 145.00 | 3.50 | 65 | 5.4 | 0.11 (0.1%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | TVTX dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | DOCS dividend | |
| 3. | SLV dividend | 8. | FXI dividend | 3. | CAVA dividend | |
| 4. | QQQ dividend | 9. | TSLA dividend | 4. | RXRX dividend | |
| 5. | EEM dividend | 10. | XLF dividend | 5. | APLD dividend | |
Want more examples? TV Dividend | TWI Dividend
