MKL Dividend Type Payments

MARKEL dividend

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

MARKEL (MKL)
Bid Ask Last Change Volume P/E Market Cap
1,105.00 1,114.00 1,112.41 -18.79 47K 41 16B

MKL Dividend-Like Income Using Covered Calls

With MKL at 1,112.41, 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% 0.03 0.0
5% 0.05 0.0
10% 0.10 0.0

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 MKL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 1150.00 0.75 5 15.0 36.00 (3.2%)
Nov 16 1190.00 3.80 33 11.5 76.00 (6.8%)
5% Yield On MKL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 1140.00 1.85 5 37.0 26.00 (2.3%)
Nov 16 1180.00 5.20 33 15.8 66.00 (5.9%)
10% Yield On MKL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 1140.00 1.85 5 37.0 26.00 (2.3%)
Nov 16 1150.00 12.10 33 36.7 36.00 (3.2%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
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Want more examples? MKC Dividend | MKSI Dividend