MA Dividend

Mastercard, Inc dividend

Although MA has a dividend of 0.33 with an ex-dividend date of Jan 8, you can sell covered calls on Mastercard, Inc 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):

Mastercard, Inc (MA)
Bid Ask Last Change Volume P/E Market Cap
196.05 196.98 196.50 -6.49 4.8M - 0.0B

MA Dividend-Like Income Using Covered Calls

With MA at 196.50, here's a table showing how big the annual "dividend" (ie. 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% 5.90 1.6
5% 9.83 2.7
10% 19.65 5.4

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 MA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 212.50 0.15 8 1.9 15.52 (7.9%)
Dec 21 215.00 0.34 15 2.3 18.02 (9.2%)
5% Yield On MA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 210.00 0.30 8 3.8 13.02 (6.6%)
Dec 21 212.50 0.57 15 3.8 15.52 (7.9%)
10% Yield On MA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 207.50 0.56 8 7.0 10.52 (5.4%)
Dec 21 210.00 0.91 15 6.1 13.02 (6.6%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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2.EEM dividend 7.FXI dividend   2. dividend
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Want more examples? M Dividend | MAA Dividend