MPWR Dividend Type Payments

Monolithic Power Systems, Inc dividend

Although MPWR has no upcoming (meaning, Board-approved and announced) dividends, 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
118.62 152.90 118.62 -2.63 217K - 0.0B

MPWR Dividend-Like Income Using Covered Calls

With MPWR at 118.62, 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% 3.56 1.0
5% 5.93 1.6
10% 11.86 3.2

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 MPWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 160.00 4.30 372 1.2 7.10 (6.0%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? MPW Dividend | MPX Dividend