MAR Dividend

MARRIOT INTL CL A 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%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
2.SPY dividend 7.GLD dividend   2.LB dividend
3.SPX dividend 8.FB dividend   3.AKRX dividend
4.QQQ dividend 9.IWM dividend   4.UVXY dividend
5.XLF dividend 10.GDX dividend   5.GPS dividend

Want more examples? MANU Dividend | MARA Dividend