MSGS Dividend Type Payments
Although MSGS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Madison Square Garden Sports Corp. Class A (New) 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):
Madison Square Garden Sports Corp. Class A (New) (MSGS) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
181.67 |
189.36 |
184.65 |
+1.34 |
157K |
115 |
4.4B |
MSGS Dividend-Like Income Using Covered Calls
With MSGS at 184.65, here's a table showing how big the annual "dividend" (i.e. 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% |
5.54 |
1.5 |
5% |
9.23 |
2.5 |
10% |
18.47 |
5.1 |
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 MSGS Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
190.00 |
11.20 |
197 |
5.7 |
0.64 (0.3%) |
Aug 16 |
190.00 |
6.90 |
106 |
6.5 |
0.64 (0.3%) |
5% Yield On MSGS Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
190.00 |
11.20 |
197 |
5.7 |
0.64 (0.3%) |
Aug 16 |
190.00 |
6.90 |
106 |
6.5 |
0.64 (0.3%) |
10% Yield On MSGS Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
190.00 |
11.20 |
197 |
5.7 |
0.64 (0.3%) |
Aug 16 |
190.00 |
6.90 |
106 |
6.5 |
0.64 (0.3%) |
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