MC Dividend
Although MC has a dividend of 0.65 with an ex-dividend date of Feb 17, you can sell covered calls on Moelis & Company Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:45 AM ET):
| Moelis & Company Class A (MC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 63.34 | 63.63 | 63.48 | -5.59 | 390K | 23 | 5.4B |
MC Dividend-Like Income Using Covered Calls
With MC at 63.48, 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% | 1.90 | 0.5 |
| 5% | 3.17 | 0.9 |
| 10% | 6.35 | 1.7 |
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 MC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 65.00 | 0.40 | 9 | 4.4 | 1.37 (2.2%) | |
| Mar 20 | 65.00 | 2.00 | 37 | 5.4 | 1.37 (2.2%) | |
| 5% Yield On MC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 65.00 | 0.40 | 9 | 4.4 | 1.37 (2.2%) | |
| Mar 20 | 65.00 | 2.00 | 37 | 5.4 | 1.37 (2.2%) | |
| 10% Yield On MC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 65.00 | 0.40 | 9 | 4.4 | 1.37 (2.2%) | |
| Mar 20 | 65.00 | 2.00 | 37 | 5.4 | 1.37 (2.2%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | RIVN dividend | |
| 2. | GLD dividend | 7. | QQQ dividend | 2. | DKNG dividend | |
| 3. | SLV dividend | 8. | TLT dividend | 3. | AAP dividend | |
| 4. | KWEB dividend | 9. | INTC dividend | 4. | PINS dividend | |
| 5. | IBIT dividend | 10. | EWZ dividend | 5. | OCUL dividend | |
Want more examples? MBWM Dividend | MCB Dividend
