TSM Dividend
Although TSM has a dividend of 0.69 with an ex-dividend date of Mar 18, you can sell covered calls on Taiwan Semiconductor Manufacturing Company Ltd. 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):
| Taiwan Semiconductor Manufacturing Company Ltd. (TSM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 211.36 | 211.50 | 211.50 | -3.29 | 21.2M | 170 | 1,090B |
TSM Dividend-Like Income Using Covered Calls
With TSM at 211.50, 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% | 6.35 | 1.7 |
| 5% | 10.58 | 2.9 |
| 10% | 21.15 | 5.8 |
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 TSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 215.00 | 5.05 | 22 | 23.0 | 3.50 (1.7%) | |
| Feb 14 | 215.00 | 6.25 | 29 | 21.6 | 3.50 (1.7%) | |
| 5% Yield On TSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 215.00 | 5.05 | 22 | 23.0 | 3.50 (1.7%) | |
| Feb 14 | 215.00 | 6.25 | 29 | 21.6 | 3.50 (1.7%) | |
| 10% Yield On TSM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 215.00 | 5.05 | 22 | 23.0 | 3.50 (1.7%) | |
| Feb 14 | 215.00 | 6.25 | 29 | 21.6 | 3.50 (1.7%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | FXI dividend | 1. | RGTI dividend | |
| 2. | TLT dividend | 7. | TSLA dividend | 2. | QUBT dividend | |
| 3. | IWM dividend | 8. | AMZN dividend | 3. | DJT dividend | |
| 4. | SPY dividend | 9. | ASHR dividend | 4. | MSTR dividend | |
| 5. | SLV dividend | 10. | AAPL dividend | 5. | SOUN dividend | |
Want more examples? TSLX Dividend | TSN Dividend
