MPC Dividend

Marathon Petroleum Corporation dividend

Although MPC has a dividend of 1.00 with an ex-dividend date of Feb 18, you can sell covered calls on Marathon Petroleum Corporation 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):

Marathon Petroleum Corporation (MPC)
Bid Ask Last Change Volume P/E Market Cap
199.00 203.00 203.00 +7.17 2.3M 21 59B

MPC Dividend-Like Income Using Covered Calls

With MPC at 203.00, 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% 6.09 1.7
5% 10.15 2.8
10% 20.30 5.6

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 MPC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 20 210.00 2.10 15 14.0 7.00 (3.4%)
Mar 20 210.00 6.00 43 14.0 7.00 (3.4%)
5% Yield On MPC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 20 210.00 2.10 15 14.0 7.00 (3.4%)
Mar 20 210.00 6.00 43 14.0 7.00 (3.4%)
10% Yield On MPC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 20 210.00 2.10 15 14.0 7.00 (3.4%)
Mar 20 210.00 6.00 43 14.0 7.00 (3.4%)

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