TMUS Dividend

T-Mobile US, Inc. dividend

Although TMUS has a dividend of 1.02 with an ex-dividend date of Feb 27, you can sell covered calls on T-Mobile US, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

T-Mobile US, Inc. (TMUS)
Bid Ask Last Change Volume P/E Market Cap
202.80 202.99 203.04 -0.76 3.1M 20 228B

TMUS Dividend-Like Income Using Covered Calls

With TMUS at 203.04, 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% 6.09 1.7
5% 10.15 2.8
10% 20.30 5.6

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 TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 2 202.50 1.15 3 22.0 0.00 (0.0%)
Feb 6 205.00 3.80 38 10.0 2.01 (1.0%)
5% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 2 202.50 1.15 3 22.0 0.00 (0.0%)
Feb 6 205.00 3.80 38 10.0 2.01 (1.0%)
10% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 2 202.50 1.15 3 22.0 0.00 (0.0%)
Feb 6 205.00 3.80 38 10.0 2.01 (1.0%)

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