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 |
| 240.39 |
270.09 |
260.09 |
+0.97 |
123K |
1234 |
6.2B |
MSGS Dividend-Like Income Using Covered Calls
With MSGS at 260.09, 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% |
7.80 |
2.1 |
| 5% |
13.00 |
3.6 |
| 10% |
26.01 |
7.1 |
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 |
| May 15 |
270.00 |
12.70 |
141 |
8.9 |
0.00 (0.0%) |
| Jan 16 |
270.00 |
1.10 |
22 |
4.6 |
0.00 (0.0%) |
| 5% Yield On MSGS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
270.00 |
12.70 |
141 |
8.9 |
0.00 (0.0%) |
| Jan 16 |
270.00 |
1.10 |
22 |
4.6 |
0.00 (0.0%) |
| 10% Yield On MSGS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
270.00 |
12.70 |
141 |
8.9 |
0.00 (0.0%) |
| Feb 20 |
270.00 |
5.70 |
57 |
9.8 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
