MSGS Dividend Type Payments
Although MSGS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Madison Square Garden Sports Corp. Class A (New) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 12:20 PM ET):
| Madison Square Garden Sports Corp. Class A (New) (MSGS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 278.81 |
281.50 |
280.01 |
+6.37 |
70K |
1303 |
6.6B |
MSGS Dividend-Like Income Using Covered Calls
With MSGS at 280.01, 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% |
8.40 |
2.3 |
| 5% |
14.00 |
3.8 |
| 10% |
28.00 |
7.7 |
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 MSGS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
290.00 |
11.30 |
99 |
11.4 |
8.50 (3.0%) |
| Feb 20 |
290.00 |
0.60 |
15 |
4.0 |
8.50 (3.0%) |
| 5% Yield On MSGS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
290.00 |
11.30 |
99 |
11.4 |
8.50 (3.0%) |
| Feb 20 |
290.00 |
0.60 |
15 |
4.0 |
8.50 (3.0%) |
| 10% Yield On MSGS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
290.00 |
11.30 |
99 |
11.4 |
8.50 (3.0%) |
| Mar 20 |
290.00 |
5.20 |
43 |
12.1 |
8.50 (3.0%) |
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