MSI Dividend Type Payments
Although MSI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Motorola Solutions, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:30 AM ET):
| Motorola Solutions, Inc. (MSI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 413.86 | 414.62 | 414.62 | -2.53 | 187K | 34 | 70B |
MSI Dividend-Like Income Using Covered Calls
With MSI at 414.62, 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% | 12.44 | 3.4 |
| 5% | 20.73 | 5.7 |
| 10% | 41.46 | 11.4 |
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 MSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 420.00 | 15.20 | 71 | 21.4 | 5.38 (1.3%) | |
| Jul 17 | 420.00 | 25.00 | 162 | 15.4 | 5.38 (1.3%) | |
| 5% Yield On MSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 420.00 | 15.20 | 71 | 21.4 | 5.38 (1.3%) | |
| Jul 17 | 420.00 | 25.00 | 162 | 15.4 | 5.38 (1.3%) | |
| 10% Yield On MSI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 420.00 | 15.20 | 71 | 21.4 | 5.38 (1.3%) | |
| Jul 17 | 420.00 | 25.00 | 162 | 15.4 | 5.38 (1.3%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | IREN dividend | |
| 2. | KWEB dividend | 7. | SPY dividend | 2. | BE dividend | |
| 3. | NVDA dividend | 8. | EWZ dividend | 3. | BMNR dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | UAMY dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | ASTS dividend | |
Want more examples? MSGS Dividend | MSM Dividend
