MTSI Dividend Type Payments

Although MTSI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Macom Tech Solution, Inc 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):

Macom Tech Solution, Inc (MTSI)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
16.75	18.50	18.31	+0.60	242K	-	1.2B

MTSI Dividend-Like Income Using Covered Calls

With MTSI at 18.31, 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%	0.55	0.2
5%	0.92	0.3
10%	1.83	0.5

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 MTSI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 15	20.00	0.20	22	0.9	1.50 (8.2%)
Apr 18	22.50	0.15	56	0.3	4.00 (21.8%)

5% Yield On MTSI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 15	20.00	0.20	22	0.9	1.50 (8.2%)
Apr 18	22.50	0.15	56	0.3	4.00 (21.8%)

10% Yield On MTSI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 15	20.00	0.20	22	0.9	1.50 (8.2%)
Apr 18	20.00	0.65	56	1.2	1.50 (8.2%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Mar 15 Expiration				Top 5 High Yield
1.	SPX dividend	6.	EWZ dividend	1.	AMRN dividend
2.	EEM dividend	7.	GE dividend	2.	FIT dividend
3.	SPY dividend	8.	LLY dividend	3.	ASND dividend
4.	QQQ dividend	9.	BAC dividend	4.	IMGN dividend
5.	FXI dividend	10.	GLD dividend	5.	OSTK dividend

Want more examples? MTSC Dividend | MTUM Dividend