MSTR Dividend Type Payments

MicroStrategy Incorporated - Class A dividend

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 Mon 3:05 PM ET):

MicroStrategy Incorporated - Class A (MSTR)
Bid Ask Last Change Volume P/E Market Cap
370.78 371.19 371.19 +30.54 23.2M - 69B

MSTR Dividend-Like Income Using Covered Calls

With MSTR at 371.19, 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% 11.14 3.1
5% 18.56 5.1
10% 37.12 10.2

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
Dec 6 370.00 42.10 19 215.3 0.00 (0.0%)
Dec 13 370.00 49.35 26 185.2 0.00 (0.0%)
5% Yield On MSTR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 370.00 42.10 19 215.3 0.00 (0.0%)
Dec 13 370.00 49.35 26 185.2 0.00 (0.0%)
10% Yield On MSTR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 370.00 42.10 19 215.3 0.00 (0.0%)
Dec 13 370.00 49.35 26 185.2 0.00 (0.0%)

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