MU Dividend Type Payments

MICRON TECH dividend

Although MU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MICRON TECH 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):

MICRON TECH (MU)
Bid Ask Last Change Volume P/E Market Cap
39.48 39.61 39.44 -0.47 25.0M 3.2 43B

MU Dividend-Like Income Using Covered Calls

With MU at 39.44, 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% 1.18 0.3
5% 1.97 0.5
10% 3.94 1.1

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 MU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 43.00 0.04 8 0.5 3.39 (8.6%)
Nov 30 45.00 0.07 15 0.5 5.39 (13.7%)
5% Yield On MU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 42.50 0.06 8 0.8 2.89 (7.3%)
Nov 30 44.50 0.09 15 0.6 4.89 (12.4%)
10% Yield On MU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 42.00 0.10 8 1.3 2.39 (6.1%)
Nov 30 43.50 0.17 15 1.1 3.89 (9.9%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.TSRO dividend
2.SPX dividend 7.IWM dividend   2.JD dividend
3.EEM dividend 8.PBR dividend   3.GBT dividend
4.EWZ dividend 9.F dividend   4.CGC dividend
5.QQQ dividend 10.BAC dividend   5.VOD dividend

Want more examples? MTZ Dividend | MUB Dividend