MAS Dividend Type Payments
Although MAS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Masco Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:35 PM ET):
| Masco Corporation (MAS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 74.32 | 74.34 | 74.32 | +1.63 | 904K | 19 | 16B |
MAS Dividend-Like Income Using Covered Calls
With MAS at 74.32, 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% | 2.23 | 0.6 |
| 5% | 3.72 | 1.0 |
| 10% | 7.43 | 2.0 |
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 MAS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 75.00 | 1.70 | 29 | 5.9 | 0.66 (0.9%) | |
| Apr 17 | 75.00 | 4.20 | 119 | 3.5 | 0.66 (0.9%) | |
| 5% Yield On MAS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 75.00 | 1.70 | 29 | 5.9 | 0.66 (0.9%) | |
| Apr 17 | 75.00 | 4.20 | 119 | 3.5 | 0.66 (0.9%) | |
| 10% Yield On MAS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 75.00 | 1.70 | 29 | 5.9 | 0.66 (0.9%) | |
| Apr 17 | 75.00 | 4.20 | 119 | 3.5 | 0.66 (0.9%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | NMRA dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | RGTI dividend | |
| 3. | AAPL dividend | 8. | TSLA dividend | 3. | SOUN dividend | |
| 4. | EEM dividend | 9. | IWM dividend | 4. | HUMA dividend | |
| 5. | XLF dividend | 10. | TLT dividend | 5. | SERV dividend | |
Want more examples? MARB Dividend | MASI Dividend
