MTSI Dividend Type Payments

MACOM TECH SOLUTION dividend

Although MTSI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MACOM TECH SOLUTION to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

MACOM TECH SOLUTION (MTSI)
Bid Ask Last Change Volume P/E Market Cap
15.00 19.48 15.28 -1.48 795K - 1.1B

MTSI Dividend-Like Income Using Covered Calls

With MTSI at 15.28, 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% 0.46 0.1
5% 0.76 0.2
10% 1.53 0.4

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 MTSI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 25.00 0.05 30 0.2 5.52 (36.1%)
Feb 15 25.00 0.30 121 0.2 5.52 (36.1%)
5% Yield On MTSI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 20.00 0.15 30 0.5 0.52 (3.4%)
Feb 15 25.00 0.30 121 0.2 5.52 (36.1%)
10% Yield On MTSI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 20.00 0.15 30 0.5 0.52 (3.4%)
Feb 15 22.50 0.55 121 0.5 3.02 (19.8%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.LLNW dividend
2.EWZ dividend 7.FXI dividend   2.CLF dividend
3.EEM dividend 8.VXX dividend   3.PYPL dividend
4.PBR dividend 9.IWM dividend   4.SKX dividend
5.QQQ dividend 10.BAC dividend   5.UVXY dividend

Want more examples? MTSC Dividend | MTUM Dividend