MLCO Dividend Type Payments

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

MELCO RESORTS & ENTERTAINMENT LTD (MLCO)
Bid Ask Last Change Volume P/E Market Cap
16.51 17.38 17.22 -0.53 3.7M 21 1.1B

MLCO Dividend-Like Income Using Covered Calls

With MLCO at 17.22, 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% 0.52 0.1
5% 0.86 0.2
10% 1.72 0.5

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 MLCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 20.00 0.05 25 0.2 2.62 (15.2%)
Dec 21 21.00 0.15 60 0.3 3.62 (21.0%)
5% Yield On MLCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 19.00 0.25 25 1.0 1.62 (9.4%)
Dec 21 21.00 0.15 60 0.3 3.62 (21.0%)
10% Yield On MLCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 19.00 0.25 25 1.0 1.62 (9.4%)
Dec 21 20.00 0.30 60 0.5 2.62 (15.2%)

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Want more examples? MKTX Dividend | MLHR Dividend