MSB Dividend

Although MSB has a dividend of 0.94 with an ex-dividend date of Oct 29, you can sell covered calls on MESABI TRUST to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:00 PM ET):

MESABI TRUST (MSB)
Bid Ask Last Change Volume P/E Market Cap
31.18 31.40 31.29 -0.56 56K 10 0.4B

MSB Dividend-Like Income Using Covered Calls

With MSB at 31.29, 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% 0.94 0.3
5% 1.56 0.4
10% 3.13 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 MSB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 35.00 0.05 4 1.3 3.60 (11.5%)
Nov 16 40.00 0.10 32 0.3 8.60 (27.5%)
5% Yield On MSB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 35.00 0.05 4 1.3 3.60 (11.5%)
Nov 16 35.00 0.35 32 1.1 3.60 (11.5%)
10% Yield On MSB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 35.00 0.05 4 1.3 3.60 (11.5%)
Nov 16 35.00 0.35 32 1.1 3.60 (11.5%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
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Want more examples? MSA Dividend | MSCI Dividend