MCO Dividend Type Payments

Moody's Corporation dividend

Although MCO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Moody's Corporation 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):

Moody's Corporation (MCO)
Bid Ask Last Change Volume P/E Market Cap
460.00 491.00 475.85 -3.15 768K 44 87B

MCO Dividend-Like Income Using Covered Calls

With MCO at 475.85, 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% 14.28 3.9
5% 23.79 6.5
10% 47.59 13.0

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 MCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 490.00 28.30 211 12.9 0.00 (0.0%)
May 16 490.00 18.10 120 14.3 0.00 (0.0%)
5% Yield On MCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 490.00 28.30 211 12.9 0.00 (0.0%)
May 16 490.00 18.10 120 14.3 0.00 (0.0%)
10% Yield On MCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 490.00 18.10 120 14.3 0.00 (0.0%)
Apr 17 490.00 14.00 91 14.3 0.00 (0.0%)

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