MTSI Dividend Type Payments
Although MTSI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MACOM Technology Solutions Holdings, Inc. 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):
| MACOM Technology Solutions Holdings, Inc. (MTSI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 129.00 | 137.91 | 135.30 | -0.52 | 186K | 131 | 10B |
MTSI Dividend-Like Income Using Covered Calls
With MTSI at 135.30, 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% | 4.06 | 1.1 |
| 5% | 6.77 | 1.9 |
| 10% | 13.53 | 3.7 |
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 MTSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 140.00 | 17.20 | 233 | 7.4 | 2.09 (1.5%) | |
| May 16 | 140.00 | 12.20 | 142 | 8.6 | 2.09 (1.5%) | |
| 5% Yield On MTSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 140.00 | 17.20 | 233 | 7.4 | 2.09 (1.5%) | |
| May 16 | 140.00 | 12.20 | 142 | 8.6 | 2.09 (1.5%) | |
| 10% Yield On MTSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 140.00 | 17.20 | 233 | 7.4 | 2.09 (1.5%) | |
| May 16 | 140.00 | 12.20 | 142 | 8.6 | 2.09 (1.5%) | |
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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? MTRX Dividend | MTUM Dividend
