MBI Dividend Type Payments

MBIA, Inc dividend

Although MBI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MBIA, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:30 PM ET):

MBIA, Inc (MBI)
Bid Ask Last Change Volume P/E Market Cap
9.14 9.15 9.14 -0.22 638K -2.1 0.8B

MBI Dividend-Like Income Using Covered Calls

With MBI at 9.14, 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% 0.27 0.1
5% 0.46 0.1
10% 0.91 0.3

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 MBI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 11.00 0.05 59 0.1 1.85 (20.2%)
Nov 15 11.00 0.21 150 0.1 1.85 (20.2%)
5% Yield On MBI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 10.00 0.19 59 0.3 0.85 (9.3%)
Nov 15 11.00 0.21 150 0.1 1.85 (20.2%)
10% Yield On MBI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 10.00 0.19 59 0.3 0.85 (9.3%)
Nov 15 10.00 0.45 150 0.3 0.85 (9.3%)

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

 
Top 10 Open Interest For Jun 21 Expiration     Top 5 High Yield
1.SPX dividend 6.FXI dividend   1.ITCI dividend
2.SPY dividend 7.BAC dividend   2.SRDX dividend
3.EEM dividend 8.VXX dividend   3.CGC dividend
4.QQQ dividend 9.AAPL dividend   4.KR dividend
5.EWZ dividend 10.XOP dividend   5.BYND dividend

Want more examples? MBG Dividend | MBIO Dividend