TEL Dividend

Although TEL has a dividend of 0.65 with an ex-dividend date of Feb 21, you can sell covered calls on TE Connectivity plc Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

TE Connectivity plc Ordinary Shares (TEL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
142.54	147.27	144.78	-3.17	2.5M	14	44B

TEL Dividend-Like Income Using Covered Calls

With TEL at 144.78, 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%	4.34	1.2
5%	7.24	2.0
10%	14.48	4.0

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 TEL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	150.00	0.05	3	1.7	2.73 (1.9%)
Jan 17	150.00	1.50	31	4.8	2.73 (1.9%)

5% Yield On TEL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	150.00	1.50	31	4.8	2.73 (1.9%)
Apr 17	150.00	6.00	121	5.0	2.73 (1.9%)

10% Yield On TEL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	150.00	1.50	31	4.8	2.73 (1.9%)
Apr 17	150.00	6.00	121	5.0	2.73 (1.9%)

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Want more examples? TEF Dividend | TEN Dividend