TMUS Dividend Type Payments

T-Mobile US, Inc dividend

Although TMUS has no upcoming (meaning, Board-approved and announced) dividends, 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 10:45 AM ET):

T-Mobile US, Inc (TMUS)
Bid Ask Last Change Volume P/E Market Cap
79.09 79.11 79.10 +0.06 348K 22 68B

TMUS Dividend-Like Income Using Covered Calls

With TMUS at 79.10, 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% 2.37 0.7
5% 3.96 1.1
10% 7.91 2.2

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 19 80.50 0.09 3 3.0 1.39 (1.8%)
Jul 26 83.00 0.08 10 0.8 3.89 (4.9%)
5% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 80.50 0.09 3 3.0 1.39 (1.8%)
Jul 26 82.50 0.38 10 3.8 3.39 (4.3%)
10% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 80.50 0.09 3 3.0 1.39 (1.8%)
Jul 26 82.50 0.38 10 3.8 3.39 (4.3%)

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