MKSI Dividend

Although MKSI has a dividend of 0.20 with an ex-dividend date of Aug 24, you can sell covered calls on MKS INSTRUMENTS 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):

MKS INSTRUMENTS (MKSI)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
88.50	98.00	88.90	-1.30	679K	13	4.9B

MKSI Dividend-Like Income Using Covered Calls

With MKSI at 88.90, 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%	2.67	0.7
5%	4.45	1.2
10%	8.89	2.4

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 MKSI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 21	100.00	0.30	36	0.8	2.00 (2.2%)
Oct 19	100.00	1.00	64	1.6	2.00 (2.2%)

5% Yield On MKSI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 19	100.00	1.00	64	1.6	2.00 (2.2%)
Jan 18	105.00	2.05	155	1.3	7.00 (7.9%)

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Top 10 Open Interest For Sep 21 Expiration				Top 5 High Yield
1.	EEM dividend	6.	GE dividend	1.	COTY dividend
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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? MKL Dividend | MKTX Dividend