MMS Dividend
Although MMS has a dividend of 0.30 with an ex-dividend date of May 14, you can sell covered calls on Maximus, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:20 PM ET):
Maximus, Inc. (MMS) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
81.10 | 81.24 | 81.17 | +0.13 | 66K | 27 | 4.9B |
MMS Dividend-Like Income Using Covered Calls
With MMS at 81.17, 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% | 2.44 | 0.7 |
5% | 4.06 | 1.1 |
10% | 8.12 | 2.2 |
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 MMS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 85.00 | 0.90 | 25 | 3.6 | 3.76 (4.6%) | |
Jun 21 | 85.00 | 0.70 | 60 | 1.2 | 3.76 (4.6%) |
5% Yield On MMS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 85.00 | 0.90 | 25 | 3.6 | 3.76 (4.6%) | |
Jun 21 | 85.00 | 0.70 | 60 | 1.2 | 3.76 (4.6%) |
10% Yield On MMS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 85.00 | 0.90 | 25 | 3.6 | 3.76 (4.6%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | KWEB dividend | 1. | FSLY dividend | |
2. | HYG dividend | 7. | EEM dividend | 2. | CVNA dividend | |
3. | SPY dividend | 8. | TSLA dividend | 3. | EYPT dividend | |
4. | QQQ dividend | 9. | SLV dividend | 4. | CIFR dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | TSLA dividend |
Want more examples? MMM Dividend | MMSI Dividend