TR Dividend Type Payments

Tootsie Roll Industries, Inc. dividend

Although TR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Tootsie Roll Industries, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:10 AM ET):

Tootsie Roll Industries, Inc. (TR)
Bid Ask Last Change Volume P/E Market Cap
30.56 30.78 30.63 +0.01 16K 23 2.1B

TR Dividend-Like Income Using Covered Calls

With TR at 30.63, 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% 0.92 0.3
5% 1.53 0.4
10% 3.06 0.8

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 TR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 32.50 0.75 157 0.5 1.72 (5.6%)
Mar 21 35.00 0.20 66 0.3 4.22 (13.8%)
5% Yield On TR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 32.50 0.75 157 0.5 1.72 (5.6%)

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

 
 
Top 10 Open Interest For Jan 17 Expiration     Top 5 High Yield
1.NVDA dividend 6.TSLA dividend   1.DNA dividend
2.SLV dividend 7.INTC dividend   2.IOVA dividend
3.AAPL dividend 8.XLF dividend   3.RUM dividend
4.SPY dividend 9.TLT dividend   4.SERV dividend
5.EEM dividend 10.IWM dividend   5.RGTI dividend

Want more examples? TQQQ Dividend | TRAK Dividend