TMUS Dividend

T-Mobile US, Inc. dividend

Although TMUS has a dividend of 0.88 with an ex-dividend date of Aug 29, 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 Fri 4:16 PM ET):

T-Mobile US, Inc. (TMUS)
Bid Ask Last Change Volume P/E Market Cap
221.80 223.00 221.52 +0.53 8.1M 22 251B

TMUS Dividend-Like Income Using Covered Calls

With TMUS at 221.52, 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% 6.65 1.8
5% 11.08 3.0
10% 22.15 6.1

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 TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 3 222.50 3.40 14 20.7 0.00 (0.0%)
Jul 11 225.00 3.25 22 14.8 2.00 (0.9%)
5% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 3 222.50 3.40 14 20.7 0.00 (0.0%)
Jul 11 225.00 3.25 22 14.8 2.00 (0.9%)
10% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 3 222.50 3.40 14 20.7 0.00 (0.0%)
Jul 11 225.00 3.25 22 14.8 2.00 (0.9%)

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