MSI Dividend Type Payments

Motorola Solutions, Inc dividend

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 Tue 2:20 PM ET):

Motorola Solutions, Inc (MSI)
Bid Ask Last Change Volume P/E Market Cap
139.39 139.46 139.46 +0.82 519K 25 23B

MSI Dividend-Like Income Using Covered Calls

With MSI at 139.46, 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% 4.18 1.1
5% 6.97 1.9
10% 13.95 3.8

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
Apr 18 145.00 0.65 24 2.7 5.54 (4.0%)
May 17 155.00 0.61 53 1.2 15.54 (11.1%)
5% Yield On MSI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 145.00 0.65 24 2.7 5.54 (4.0%)
May 17 150.00 1.34 53 2.5 10.54 (7.6%)
10% Yield On MSI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 140.00 2.35 24 9.8 0.54 (0.4%)
May 17 145.00 2.65 53 5.0 5.54 (4.0%)

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