MAR Dividend

Although MAR has a dividend of 0.41 with an ex-dividend date of Aug 22, 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 Fri 4:16 PM ET):

MARRIOT INTL CL A (MAR)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
121.40	125.00	123.85	+1.70	2.6M	29	42B

MAR Dividend-Like Income Using Covered Calls

With MAR at 123.85, 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%	3.72	1.0
5%	6.19	1.7
10%	12.39	3.4

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 MAR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 24	126.00	0.25	8	3.1	1.00 (0.8%)
Aug 31	128.00	0.25	15	1.7	3.00 (2.4%)

5% Yield On MAR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 24	126.00	0.25	8	3.1	1.00 (0.8%)
Aug 31	127.00	0.40	15	2.7	2.00 (1.6%)

10% Yield On MAR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 24	125.00	0.45	8	5.6	0.00 (0.0%)
Aug 31	126.00	0.65	15	4.3	1.00 (0.8%)

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Top 10 Open Interest For Sep 21 Expiration				Top 5 High Yield
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Want more examples? MANU Dividend | MARA Dividend