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 Fri 4:16 PM ET):
| Twilio Inc. Class A (TWLO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 111.95 |
113.26 |
111.94 |
-2.69 |
2.8M |
- |
19B |
TWLO Dividend-Like Income Using Covered Calls
With TWLO at 111.94, 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% |
3.36 |
0.9 |
| 5% |
5.60 |
1.5 |
| 10% |
11.19 |
3.1 |
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 |
| Feb 7 |
113.00 |
4.75 |
22 |
20.4 |
0.00 (0.0%) |
| Feb 14 |
113.00 |
7.15 |
29 |
23.8 |
0.00 (0.0%) |
| 5% Yield On TWLO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 7 |
113.00 |
4.75 |
22 |
20.4 |
0.00 (0.0%) |
| Feb 14 |
113.00 |
7.15 |
29 |
23.8 |
0.00 (0.0%) |
| 10% Yield On TWLO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 7 |
113.00 |
4.75 |
22 |
20.4 |
0.00 (0.0%) |
| Feb 14 |
113.00 |
7.15 |
29 |
23.8 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
