MPLX Dividend Type Payments

Mplx LP dividend

Although MPLX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Mplx LP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Mplx LP (MPLX)
Bid Ask Last Change Volume P/E Market Cap
32.90 34.08 33.28 -0.82 1.6M - 0.0B

MPLX Dividend-Like Income Using Covered Calls

With MPLX at 33.28, 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% 1.00 0.3
5% 1.66 0.5
10% 3.33 0.9

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 MPLX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 36.00 0.05 12 0.4 1.92 (5.8%)
Jan 18 36.00 0.25 40 0.6 1.92 (5.8%)
5% Yield On MPLX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 35.00 0.15 12 1.3 0.92 (2.8%)
Jan 18 36.00 0.25 40 0.6 1.92 (5.8%)
10% Yield On MPLX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 35.00 0.15 12 1.3 0.92 (2.8%)
Jan 18 35.00 0.50 40 1.3 0.92 (2.8%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DXPE dividend 6.NXTM dividend   1. dividend
2.NVT dividend 7.MTOR dividend   2. dividend
3.MSEX dividend 8.WLTW dividend   3. dividend
4.WGP dividend 9.EDZ dividend   4. dividend
5.ECH dividend 10.ODFL dividend   5. dividend

Want more examples? MPC Dividend | MPO Dividend