MSTR Dividend Type Payments
Although MSTR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Strategy Inc - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 9:45 AM ET):
| Strategy Inc - Class A (MSTR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 182.66 | 182.93 | 182.78 | +9.79 | 6.4M | 8.2 | 49B |
MSTR Dividend-Like Income Using Covered Calls
With MSTR at 182.78, 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% | 5.48 | 1.5 |
| 5% | 9.14 | 2.5 |
| 10% | 18.28 | 5.0 |
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 | |
| Feb 6 | 185.00 | 12.00 | 24 | 50.0 | 2.07 (1.1%) | |
| Feb 13 | 185.00 | 13.85 | 31 | 44.7 | 2.07 (1.1%) | |
| 5% Yield On MSTR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 185.00 | 12.00 | 24 | 50.0 | 2.07 (1.1%) | |
| Feb 13 | 185.00 | 13.85 | 31 | 44.7 | 2.07 (1.1%) | |
| 10% Yield On MSTR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 185.00 | 12.00 | 24 | 50.0 | 2.07 (1.1%) | |
| Feb 13 | 185.00 | 13.85 | 31 | 44.7 | 2.07 (1.1%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | SGML dividend | |
| 2. | IBIT dividend | 7. | SPY dividend | 2. | LQDA dividend | |
| 3. | TLT dividend | 8. | NFLX dividend | 3. | USAR dividend | |
| 4. | INTC dividend | 9. | QQQ dividend | 4. | CRVS dividend | |
| 5. | AAPL dividend | 10. | GLD dividend | 5. | IMNM dividend | |
Want more examples? MST Dividend | MSTX Dividend
