MESO Dividend Type Payments
Although MESO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Mesoblast Limited - American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:35 PM ET):
| Mesoblast Limited - American Depositary Shares (MESO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 18.20 |
18.30 |
18.24 |
-0.72 |
284K |
- |
0.0B |
MESO Dividend-Like Income Using Covered Calls
With MESO at 18.24, 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% |
0.55 |
0.1 |
| 5% |
0.91 |
0.2 |
| 10% |
1.82 |
0.5 |
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 MESO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
20.00 |
0.40 |
11 |
3.6 |
1.70 (9.3%) |
| Apr 17 |
19.00 |
2.35 |
101 |
2.3 |
0.70 (3.8%) |
| 5% Yield On MESO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
20.00 |
0.40 |
11 |
3.6 |
1.70 (9.3%) |
| Apr 17 |
19.00 |
2.35 |
101 |
2.3 |
0.70 (3.8%) |
| 10% Yield On MESO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
20.00 |
0.40 |
11 |
3.6 |
1.70 (9.3%) |
| Apr 17 |
19.00 |
2.35 |
101 |
2.3 |
0.70 (3.8%) |
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