TWIN Dividend
Although TWIN has a dividend of 0.04 with an ex-dividend date of Feb 18, you can sell covered calls on Twin Disc, Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:10 PM ET):
| Twin Disc, Incorporated (TWIN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 17.40 | 17.58 | 17.58 | -1.12 | 36K | 13 | 0.3B |
TWIN Dividend-Like Income Using Covered Calls
With TWIN at 17.58, 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% | 0.53 | 0.1 |
| 5% | 0.88 | 0.2 |
| 10% | 1.76 | 0.5 |
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 TWIN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 17.50 | 0.15 | 37 | 0.2 | 0.00 (0.0%) | |
| Sep 18 | 20.00 | 0.40 | 219 | 0.2 | 2.42 (13.8%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | RIVN dividend | |
| 2. | GLD dividend | 7. | QQQ dividend | 2. | AAP dividend | |
| 3. | SLV dividend | 8. | TLT dividend | 3. | DKNG dividend | |
| 4. | KWEB dividend | 9. | INTC dividend | 4. | PINS dividend | |
| 5. | IBIT dividend | 10. | EWZ dividend | 5. | OCUL dividend | |
Want more examples? TWI Dividend | TWLO Dividend
