MSI Dividend Type Payments
Although MSI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Motorola Solutions, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 1:00 PM ET):
| Motorola Solutions, Inc. (MSI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 414.83 | 415.42 | 415.36 | +2.08 | 262K | 35 | 69B |
MSI Dividend-Like Income Using Covered Calls
With MSI at 415.36, 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% | 12.46 | 3.4 |
| 5% | 20.77 | 5.7 |
| 10% | 41.54 | 11.4 |
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 MSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 420.00 | 17.60 | 94 | 18.7 | 4.58 (1.1%) | |
| May 16 | 420.00 | 1.05 | 3 | 35.0 | 4.58 (1.1%) | |
| 5% Yield On MSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 420.00 | 17.60 | 94 | 18.7 | 4.58 (1.1%) | |
| May 16 | 420.00 | 1.05 | 3 | 35.0 | 4.58 (1.1%) | |
| 10% Yield On MSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 420.00 | 17.60 | 94 | 18.7 | 4.58 (1.1%) | |
| May 16 | 420.00 | 1.05 | 3 | 35.0 | 4.58 (1.1%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | DOCS dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | CAVA dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | NFE dividend | |
| 4. | TSLA dividend | 9. | GLD dividend | 4. | QUBT dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | RCAT dividend | |
Want more examples? MSGS Dividend | MSM Dividend
