MTSI Dividend Type Payments
Although MTSI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MACOM Technology Solutions Holdings, 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 Technology Solutions Holdings, Inc. (MTSI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 172.22 | 189.68 | 175.01 | -0.80 | 345K | - | 13B |
MTSI Dividend-Like Income Using Covered Calls
With MTSI at 175.01, 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% | 5.25 | 1.4 |
| 5% | 8.75 | 2.4 |
| 10% | 17.50 | 4.8 |
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 MTSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 190.00 | 12.70 | 141 | 9.0 | 0.32 (0.2%) | |
| Jan 16 | 190.00 | 1.05 | 22 | 4.8 | 0.32 (0.2%) | |
| 5% Yield On MTSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 190.00 | 12.70 | 141 | 9.0 | 0.32 (0.2%) | |
| Jan 16 | 190.00 | 1.05 | 22 | 4.8 | 0.32 (0.2%) | |
| 10% Yield On MTSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 190.00 | 12.70 | 141 | 9.0 | 0.32 (0.2%) | |
| Dec 18 | 190.00 | 26.00 | 358 | 7.3 | 0.32 (0.2%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | DAWN dividend | |
| 2. | INTC dividend | 7. | GLD dividend | 2. | IMRX dividend | |
| 3. | TLT dividend | 8. | NIO dividend | 3. | TMC dividend | |
| 4. | IBIT dividend | 9. | NFLX dividend | 4. | PGR dividend | |
| 5. | AAPL dividend | 10. | SPY dividend | 5. | RARE dividend | |
Want more examples? MTRX Dividend | MTUM Dividend
