MTN Dividend

Vail Resorts, Inc dividend

Although MTN has a dividend of 1.76 with an ex-dividend date of Jun 25, you can sell covered calls on Vail Resorts, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Vail Resorts, Inc (MTN)
Bid Ask Last Change Volume P/E Market Cap
203.00 275.00 236.75 +0.77 206K 32 10B

MTN Dividend-Like Income Using Covered Calls

With MTN at 236.75, 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% 7.10 1.9
5% 11.84 3.2
10% 23.68 6.5

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 MTN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 280.00 4.00 187 2.1 5.00 (2.1%)
Jan 17 280.00 4.60 215 2.1 5.00 (2.1%)

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Want more examples? MTL Dividend | MTOR Dividend