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 4:16 PM ET):
| MicroStrategy Incorporated - Class A (MSTR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 397.01 | 397.39 | 396.50 | +29.50 | 23.7M | - | 74B |
MSTR Dividend-Like Income Using Covered Calls
With MSTR at 396.50, 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% | 11.90 | 3.3 |
| 5% | 19.83 | 5.4 |
| 10% | 39.65 | 10.9 |
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 | |
| Feb 7 | 400.00 | 40.80 | 22 | 185.5 | 2.61 (0.7%) | |
| Feb 14 | 400.00 | 47.15 | 29 | 162.6 | 2.61 (0.7%) | |
| 5% Yield On MSTR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 400.00 | 40.80 | 22 | 185.5 | 2.61 (0.7%) | |
| Feb 14 | 400.00 | 47.15 | 29 | 162.6 | 2.61 (0.7%) | |
| 10% Yield On MSTR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 400.00 | 40.80 | 22 | 185.5 | 2.61 (0.7%) | |
| Feb 14 | 400.00 | 47.15 | 29 | 162.6 | 2.61 (0.7%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | FXI dividend | 1. | RGTI dividend | |
| 2. | TLT dividend | 7. | TSLA dividend | 2. | QUBT dividend | |
| 3. | IWM dividend | 8. | AMZN dividend | 3. | DJT dividend | |
| 4. | SPY dividend | 9. | ASHR dividend | 4. | MSTR dividend | |
| 5. | SLV dividend | 10. | AAPL dividend | 5. | SOUN dividend | |
Want more examples? MSOS Dividend | MSTX Dividend
