MMP Dividend Type Payments

MAGELLAN MIDSTREAM dividend

Although MMP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MAGELLAN MIDSTREAM 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):

MAGELLAN MIDSTREAM (MMP)
Bid Ask Last Change Volume P/E Market Cap
70.00 72.70 71.05 +0.88 449K 19 16B

MMP Dividend-Like Income Using Covered Calls

With MMP at 71.05, 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% 2.13 0.6
5% 3.55 1.0
10% 7.11 1.9

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 MMP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 72.50 0.55 36 1.0 0.00 (0.0%)
Oct 19 72.50 1.10 64 1.4 0.00 (0.0%)
5% Yield On MMP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 72.50 1.10 64 1.4 0.00 (0.0%)
Jan 18 72.50 2.05 155 1.2 0.00 (0.0%)

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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
2.SPY dividend 7.GLD dividend   2.LB dividend
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? MMM Dividend | MMS Dividend