MCHP Dividend Type Payments

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

Microchip Technology Incorporated (MCHP)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
63.20	63.40	63.61	+6.90	19.4M	-	31B

MCHP Dividend-Like Income Using Covered Calls

With MCHP at 63.61, here's a table showing how big the annual "dividend" (i.e. 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%	1.91	0.5
5%	3.18	0.9
10%	6.36	1.7

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 MCHP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 5	64.00	0.70	3	23.3	0.60 (0.9%)
Dec 12	64.00	1.70	10	17.0	0.60 (0.9%)

5% Yield On MCHP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 5	64.00	0.70	3	23.3	0.60 (0.9%)
Dec 12	64.00	1.70	10	17.0	0.60 (0.9%)

10% Yield On MCHP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 5	64.00	0.70	3	23.3	0.60 (0.9%)
Dec 12	64.00	1.70	10	17.0	0.60 (0.9%)

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Top 10 Open Interest For Dec 19 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	EEM dividend	1.	SNOW dividend
2.	SPY dividend	7.	GLD dividend	2.	RZLT dividend
3.	IWM dividend	8.	TLT dividend	3.	HUT dividend
4.	QQQ dividend	9.	SLV dividend	4.	IOT dividend
5.	IBIT dividend	10.	FXI dividend	5.	HPE dividend

Want more examples? MCHI Dividend | MCHX Dividend