MRO Dividend Type Payments

Marathon Oil Corporation dividend

Although MRO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Marathon Oil 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):

Marathon Oil Corporation (MRO)
Bid Ask Last Change Volume P/E Market Cap
28.46 28.69 28.59 -0.15 5.1M 12 16B

MRO Dividend-Like Income Using Covered Calls

With MRO at 28.59, 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% 0.86 0.2
5% 1.43 0.4
10% 2.86 0.8

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 MRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 29.00 0.67 36 1.9 0.31 (1.1%)
Nov 22 29.00 0.06 8 0.8 0.31 (1.1%)
5% Yield On MRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 29.00 0.67 36 1.9 0.31 (1.1%)
Nov 22 29.00 0.06 8 0.8 0.31 (1.1%)
10% Yield On MRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 29.00 0.67 36 1.9 0.31 (1.1%)
Nov 29 29.00 0.29 15 1.9 0.31 (1.1%)

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Want more examples? MRNS Dividend | MRSN Dividend