TECH Dividend Type Payments
Although TECH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Bio-Techne Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Bio-Techne Corp (TECH) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 68.21 |
70.36 |
68.67 |
-1.29 |
3.4M |
143 |
11B |
TECH Dividend-Like Income Using Covered Calls
With TECH at 68.67, 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% |
2.06 |
0.6 |
| 5% |
3.43 |
0.9 |
| 10% |
6.87 |
1.9 |
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 TECH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 16 |
75.00 |
7.20 |
274 |
2.6 |
4.64 (6.8%) |
| Apr 17 |
75.00 |
2.05 |
92 |
2.2 |
4.64 (6.8%) |
| 5% Yield On TECH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 16 |
75.00 |
7.20 |
274 |
2.6 |
4.64 (6.8%) |
| Apr 17 |
75.00 |
2.05 |
92 |
2.2 |
4.64 (6.8%) |
| 10% Yield On TECH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 16 |
75.00 |
7.20 |
274 |
2.6 |
4.64 (6.8%) |
| Apr 17 |
75.00 |
2.05 |
92 |
2.2 |
4.64 (6.8%) |
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