TD Dividend Type Payments

Although TD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Toronto Dominion Bank (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:25 PM ET):

Toronto Dominion Bank (The) (TD)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
59.49	59.50	59.49	-0.11	531K	18	110B

TD Dividend-Like Income Using Covered Calls

With TD at 59.49, 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%	1.78	0.5
5%	2.97	0.8
10%	5.95	1.6

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 TD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	60.00	1.50	51	2.9	0.50 (0.8%)
Oct 17	60.00	3.30	234	1.4	0.50 (0.8%)

5% Yield On TD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	60.00	1.50	51	2.9	0.50 (0.8%)
Oct 17	60.00	3.30	234	1.4	0.50 (0.8%)

10% Yield On TD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	60.00	1.50	51	2.9	0.50 (0.8%)
Jul 18	60.00	2.55	143	1.8	0.50 (0.8%)

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Want more examples? TCX Dividend | TDC Dividend