MPWR Dividend

Monolithic Power Systems, Inc dividend

Although MPWR has a dividend of 0.40 with an ex-dividend date of Mar 28, you can sell covered calls on Monolithic Power Systems, Inc 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):

Monolithic Power Systems, Inc (MPWR)
Bid Ask Last Change Volume P/E Market Cap
100.00 138.48 138.48 +2.48 328K 66 5.8B

MPWR Dividend-Like Income Using Covered Calls

With MPWR at 138.48, 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% 4.15 1.1
5% 6.92 1.9
10% 13.85 3.8

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 MPWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 150.00 0.45 29 1.6 11.52 (8.3%)
Jun 21 160.00 2.15 127 1.7 21.52 (15.5%)
5% Yield On MPWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 145.00 1.55 29 5.3 6.52 (4.7%)
Jun 21 155.00 3.40 127 2.7 16.52 (11.9%)
10% Yield On MPWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 145.00 1.55 29 5.3 6.52 (4.7%)
Jun 21 145.00 6.60 127 5.2 6.52 (4.7%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ICPT dividend
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5.QQQ dividend 10.JD dividend   5.VKTX dividend

Want more examples? MPW Dividend | MPX Dividend