MCHX Dividend Type Payments

Marchex, Inc. - Class B dividend

Although MCHX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Marchex, Inc. - Class B to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Marchex, Inc. - Class B (MCHX)
Bid Ask Last Change Volume P/E Market Cap
1.60 2.05 1.98 +0.05 20K - 0.1B

MCHX Dividend-Like Income Using Covered Calls

With MCHX at 1.98, 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% 0.06 0.0
5% 0.10 0.0
10% 0.20 0.1

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 MCHX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 2.50 0.05 30 0.2 0.45 (22.7%)
Jun 20 2.50 0.25 184 0.1 0.45 (22.7%)
5% Yield On MCHX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 2.50 0.05 30 0.2 0.45 (22.7%)
Jun 20 2.50 0.25 184 0.1 0.45 (22.7%)
10% Yield On MCHX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 2.50 0.05 30 0.2 0.45 (22.7%)
Jun 20 2.50 0.25 184 0.1 0.45 (22.7%)

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