MAR Dividend
Although MAR has a dividend of 0.41 with an ex-dividend date of Feb 28, 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 |
| 118.57 | 125.00 | 121.05 | +2.43 | 2.0M | 25 | 41B |
MAR Dividend-Like Income Using Covered Calls
With MAR at 121.05, 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% | 3.63 | 1.0 |
| 5% | 6.05 | 1.7 |
| 10% | 12.11 | 3.3 |
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 | |
| Mar 1 | 130.00 | 0.15 | 15 | 1.0 | 5.00 (4.1%) | |
| Mar 8 | 130.00 | 0.30 | 22 | 1.4 | 5.00 (4.1%) | |
| 5% Yield On MAR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 1 | 128.00 | 0.30 | 15 | 2.0 | 3.00 (2.5%) | |
| Mar 8 | 128.00 | 0.50 | 22 | 2.3 | 3.00 (2.5%) | |
| 10% Yield On MAR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 1 | 127.00 | 0.50 | 15 | 3.3 | 2.00 (1.7%) | |
| Mar 8 | 127.00 | 0.75 | 22 | 3.4 | 2.00 (1.7%) | |
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| Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | ICPT dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | ROKU dividend | |
| 3. | SPY dividend | 8. | XOP dividend | 3. | KPTI dividend | |
| 4. | FXI dividend | 9. | BAC dividend | 4. | BHC dividend | |
| 5. | QQQ dividend | 10. | JD dividend | 5. | VKTX dividend | |
Want more examples? MANU Dividend | MARA Dividend
