MS Dividend Type Payments

Morgan Stanley dividend

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

Morgan Stanley (MS)
Bid Ask Last Change Volume P/E Market Cap
42.85 43.23 43.03 -0.92 14.7M 9.3 75B

MS Dividend-Like Income Using Covered Calls

With MS at 43.03, 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% 1.29 0.4
5% 2.15 0.6
10% 4.30 1.2

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 MS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 22 44.00 0.05 3 1.7 0.77 (1.8%)
Mar 29 45.00 0.07 10 0.7 1.77 (4.1%)
5% Yield On MS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 22 44.00 0.05 3 1.7 0.77 (1.8%)
Mar 29 45.00 0.07 10 0.7 1.77 (4.1%)
10% Yield On MS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 22 44.00 0.05 3 1.7 0.77 (1.8%)
Mar 29 44.50 0.15 10 1.5 1.27 (3.0%)

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Want more examples? MRVL Dividend | MSA Dividend