TWLO Dividend Type Payments
Although TWLO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Twilio 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 Mon 4:16 PM ET):
| Twilio Inc. Class A (TWLO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 80.81 |
82.20 |
81.56 |
-3.41 |
2.0M |
- |
14B |
TWLO Dividend-Like Income Using Covered Calls
With TWLO at 81.56, 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% |
2.45 |
0.7 |
| 5% |
4.08 |
1.1 |
| 10% |
8.16 |
2.2 |
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 TWLO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
100.00 |
0.47 |
12 |
3.9 |
17.80 (21.8%) |
| May 9 |
100.00 |
0.73 |
19 |
3.8 |
17.80 (21.8%) |
| 5% Yield On TWLO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
100.00 |
0.47 |
12 |
3.9 |
17.80 (21.8%) |
| May 9 |
100.00 |
0.73 |
19 |
3.8 |
17.80 (21.8%) |
| 10% Yield On TWLO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
100.00 |
0.47 |
12 |
3.9 |
17.80 (21.8%) |
| May 9 |
100.00 |
0.73 |
19 |
3.8 |
17.80 (21.8%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
