MSTR Dividend Type Payments
Although MSTR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MicroStrategy Incorporated - Class A 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):
| MicroStrategy Incorporated - Class A (MSTR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 341.05 | 341.30 | 341.05 | -17.13 | 12.8M | - | 73B |
MSTR Dividend-Like Income Using Covered Calls
With MSTR at 341.05, 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% | 10.23 | 2.8 |
| 5% | 17.05 | 4.7 |
| 10% | 34.11 | 9.3 |
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 MSTR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 3 | 340.00 | 16.90 | 9 | 173.3 | 0.00 (0.0%) | |
| Jan 10 | 340.00 | 24.30 | 16 | 143.8 | 0.00 (0.0%) | |
| 5% Yield On MSTR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 3 | 340.00 | 16.90 | 9 | 173.3 | 0.00 (0.0%) | |
| Jan 10 | 340.00 | 24.30 | 16 | 143.8 | 0.00 (0.0%) | |
| 10% Yield On MSTR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 3 | 340.00 | 16.90 | 9 | 173.3 | 0.00 (0.0%) | |
| Jan 10 | 340.00 | 24.30 | 16 | 143.8 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | XLF dividend | 1. | QBTS dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | NMRA dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | RUM dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | QS dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | WULF dividend | |
Want more examples? MSOS Dividend | MSTX Dividend
