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 Fri 4:16 PM ET):

Martin Marietta Materials, Inc (MLM)
Bid Ask Last Change Volume P/E Market Cap
170.00 181.90 174.76 -0.74 1.0M - 0.0B

MLM Dividend-Like Income Using Covered Calls

With MLM at 174.76, 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% 5.24 1.4
5% 8.74 2.4
10% 17.48 4.8

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
Dec 21 185.00 0.30 8 3.8 3.10 (1.8%)
Jan 18 195.00 0.95 36 2.6 13.10 (7.5%)
5% Yield On MLM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 185.00 0.30 8 3.8 3.10 (1.8%)
Jan 18 195.00 0.95 36 2.6 13.10 (7.5%)
10% Yield On MLM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 185.00 2.90 36 8.1 3.10 (1.8%)
Apr 18 190.00 7.30 126 5.8 8.10 (4.6%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? MLI Dividend | MLN Dividend