MKSI Dividend

MKS Instruments, Inc. dividend

Although MKSI has a dividend of 0.22 with an ex-dividend date of Nov 25, you can sell covered calls on MKS Instruments, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:15 AM ET):

MKS Instruments, Inc. (MKSI)
Bid Ask Last Change Volume P/E Market Cap
106.11 106.30 106.21 -1.89 68K 235 7.3B

MKSI Dividend-Like Income Using Covered Calls

With MKSI at 106.21, 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% 3.19 0.9
5% 5.31 1.5
10% 10.62 2.9

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 MKSI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 110.00 3.30 32 10.3 3.70 (3.5%)
May 16 110.00 11.20 179 6.3 3.70 (3.5%)
5% Yield On MKSI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 110.00 3.30 32 10.3 3.70 (3.5%)
May 16 110.00 11.20 179 6.3 3.70 (3.5%)
10% Yield On MKSI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 110.00 3.30 32 10.3 3.70 (3.5%)
May 16 110.00 11.20 179 6.3 3.70 (3.5%)

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