TW Dividend Type Payments
Although TW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Tradeweb Markets Inc. - Class A 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):
| Tradeweb Markets Inc. - Class A (TW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 126.50 | 131.72 | 129.02 | -2.14 | 749K | 63 | 31B |
TW Dividend-Like Income Using Covered Calls
With TW at 129.02, 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% | 3.87 | 1.1 |
| 5% | 6.45 | 1.8 |
| 10% | 12.90 | 3.5 |
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 TW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 135.00 | 2.70 | 91 | 3.0 | 3.28 (2.5%) | |
| Jul 18 | 135.00 | 7.60 | 183 | 4.2 | 3.28 (2.5%) | |
| 5% Yield On TW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 135.00 | 2.70 | 91 | 3.0 | 3.28 (2.5%) | |
| Jul 18 | 135.00 | 7.60 | 183 | 4.2 | 3.28 (2.5%) | |
| 10% Yield On TW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 135.00 | 7.60 | 183 | 4.2 | 3.28 (2.5%) | |
| Feb 21 | 135.00 | 2.05 | 36 | 5.7 | 3.28 (2.5%) | |
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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? TV Dividend | TWI Dividend
