MLM Dividend Type Payments

Martin Marietta Materials, Inc dividend

Although MLM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Martin Marietta Materials, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:25 AM ET):

Martin Marietta Materials, Inc (MLM)
Bid Ask Last Change Volume P/E Market Cap
198.90 199.12 199.12 +4.16 105K 26 12B

MLM Dividend-Like Income Using Covered Calls

With MLM at 199.12, 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% 5.97 1.6
5% 9.96 2.7
10% 19.91 5.5

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 MLM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 210.00 1.10 31 3.5 10.88 (5.5%)
May 17 220.00 1.35 60 2.3 20.88 (10.5%)
5% Yield On MLM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 210.00 1.10 31 3.5 10.88 (5.5%)
May 17 210.00 3.70 60 6.2 10.88 (5.5%)
10% Yield On MLM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 200.00 4.60 31 14.8 0.88 (0.4%)
May 17 210.00 3.70 60 6.2 10.88 (5.5%)

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