MLCO Dividend Type Payments
Although MLCO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Melco Resorts & Entertainment Limited - American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:20 PM ET):
| Melco Resorts & Entertainment Limited - American Depositary Shares (MLCO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 8.21 |
8.22 |
8.21 |
+0.14 |
412K |
192 |
0.0B |
MLCO Dividend-Like Income Using Covered Calls
With MLCO at 8.21, 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% |
0.25 |
0.1 |
| 5% |
0.41 |
0.1 |
| 10% |
0.82 |
0.2 |
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 |
| Dec 19 |
9.00 |
0.20 |
45 |
0.4 |
0.78 (9.5%) |
| Nov 21 |
8.50 |
0.05 |
17 |
0.3 |
0.28 (3.4%) |
| 5% Yield On MLCO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
9.00 |
0.20 |
45 |
0.4 |
0.78 (9.5%) |
| Nov 21 |
8.50 |
0.05 |
17 |
0.3 |
0.28 (3.4%) |
| 10% Yield On MLCO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
9.00 |
0.20 |
45 |
0.4 |
0.78 (9.5%) |
| Nov 21 |
8.50 |
0.05 |
17 |
0.3 |
0.28 (3.4%) |
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