MSTR Dividend Type Payments
Although MSTR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MicroStrategy Incorporated - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:10 PM ET):
| MicroStrategy Incorporated - Class A (MSTR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 293.08 | 293.25 | 293.11 | -31.48 | 10.5M | - | 84B |
MSTR Dividend-Like Income Using Covered Calls
With MSTR at 293.11, 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% | 8.79 | 2.4 |
| 5% | 14.66 | 4.0 |
| 10% | 29.31 | 8.0 |
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 MSTR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 2 | 295.00 | 29.05 | 36 | 80.7 | 1.75 (0.6%) | |
| Apr 4 | 292.50 | 15.00 | 8 | 178.1 | 0.00 (0.0%) | |
| 5% Yield On MSTR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 2 | 295.00 | 29.05 | 36 | 80.7 | 1.75 (0.6%) | |
| Apr 4 | 292.50 | 15.00 | 8 | 178.1 | 0.00 (0.0%) | |
| 10% Yield On MSTR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 2 | 295.00 | 29.05 | 36 | 80.7 | 1.75 (0.6%) | |
| Apr 4 | 292.50 | 15.00 | 8 | 178.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | NIO dividend | 1. | EWTX dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | CORZ dividend | |
| 3. | SLV dividend | 8. | TLT dividend | 3. | ACHR dividend | |
| 4. | ASHR dividend | 9. | IWM dividend | 4. | U dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | RCAT dividend | |
Want more examples? MSOS Dividend | MSTX Dividend
