MPLX Dividend Type Payments

MPLX LP Common Units Representing Limited Partner Interests dividend

Although MPLX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MPLX LP Common Units Representing Limited Partner Interests to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

MPLX LP Common Units Representing Limited Partner Interests (MPLX)
Bid Ask Last Change Volume P/E Market Cap
52.80 53.33 52.80 -0.41 1.3M 11 108B

MPLX Dividend-Like Income Using Covered Calls

With MPLX at 52.80, 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% 1.58 0.4
5% 2.64 0.7
10% 5.28 1.4

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 MPLX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 55.00 0.20 33 0.6 1.67 (3.2%)
Jan 16 55.00 0.60 61 1.0 1.67 (3.2%)
5% Yield On MPLX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 55.00 0.60 61 1.0 1.67 (3.2%)
Mar 20 55.00 1.05 124 0.8 1.67 (3.2%)

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