MPLX Dividend Type Payments
Although MPLX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MPLX LP Common Units Representing Limited Partner Interests to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| MPLX LP Common Units Representing Limited Partner Interests (MPLX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 48.62 | 49.03 | 48.95 | +0.33 | 1.1M | 12 | 99B |
MPLX Dividend-Like Income Using Covered Calls
With MPLX at 48.95, 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% | 1.47 | 0.4 |
| 5% | 2.45 | 0.7 |
| 10% | 4.90 | 1.3 |
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 MPLX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 49.00 | 0.20 | 4 | 4.3 | 0.00 (0.0%) | |
| Dec 19 | 49.00 | 0.55 | 67 | 0.8 | 0.00 (0.0%) | |
| 5% Yield On MPLX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 49.00 | 0.20 | 4 | 4.3 | 0.00 (0.0%) | |
| Dec 19 | 49.00 | 0.55 | 67 | 0.8 | 0.00 (0.0%) | |
| 10% Yield On MPLX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 49.00 | 0.20 | 4 | 4.3 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | AIV dividend | |
| 2. | IBIT dividend | 7. | INTC dividend | 2. | AREC dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | LAC dividend | |
| 4. | SPY dividend | 9. | QQQ dividend | 4. | UAMY dividend | |
| 5. | TSLA dividend | 10. | IWM dividend | 5. | HIVE dividend | |
Want more examples? MPC Dividend | MPW Dividend
