MAR Dividend Type Payments

MARRIOT INTL CL A dividend

Although MAR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MARRIOT INTL CL A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

MARRIOT INTL CL A (MAR)
Bid Ask Last Change Volume P/E Market Cap
110.48 113.00 112.35 +0.86 4.0M 26 39B

MAR Dividend-Like Income Using Covered Calls

With MAR at 112.35, 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% 3.37 0.9
5% 5.62 1.5
10% 11.24 3.1

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 MAR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 118.00 0.05 4 1.3 5.00 (4.5%)
Nov 2 119.00 0.15 11 1.4 6.00 (5.3%)
5% Yield On MAR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 117.00 0.10 4 2.5 4.00 (3.6%)
Nov 2 118.00 0.25 11 2.3 5.00 (4.5%)
10% Yield On MAR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 116.00 0.15 4 3.8 3.00 (2.7%)
Nov 2 117.00 0.40 11 3.6 4.00 (3.6%)

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