TGT Dividend

Target Corporation dividend

Although TGT has a dividend of 1.12 with an ex-dividend date of May 14, you can sell covered calls on Target Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:10 PM ET):

Target Corporation (TGT)
Bid Ask Last Change Volume P/E Market Cap
96.87 96.91 96.91 +0.54 2.1M 11 44B

TGT Dividend-Like Income Using Covered Calls

With TGT at 96.91, 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% 2.91 0.8
5% 4.85 1.3
10% 9.69 2.7

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 TGT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 100.00 0.50 4 12.5 3.09 (3.2%)
Jun 6 100.00 4.60 39 11.8 3.09 (3.2%)
5% Yield On TGT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 100.00 0.50 4 12.5 3.09 (3.2%)
Jun 6 100.00 4.60 39 11.8 3.09 (3.2%)
10% Yield On TGT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 100.00 0.50 4 12.5 3.09 (3.2%)
Jun 6 100.00 4.60 39 11.8 3.09 (3.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For May 16 Expiration     Top 5 High Yield
1.NVDA dividend 6.GLD dividend   1.WGS dividend
2.SPY dividend 7.IWM dividend   2.ZETA dividend
3.TLT dividend 8.FXI dividend   3.ENVX dividend
4.SLV dividend 9.TSLA dividend   4.SNAP dividend
5.QQQ dividend 10.IBIT dividend   5.RDDT dividend

Want more examples? TGS Dividend | TGTX Dividend