MTN Dividend Type Payments

Vail Resorts, Inc. dividend

Although MTN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vail Resorts, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:10 AM ET):

Vail Resorts, Inc. (MTN)
Bid Ask Last Change Volume P/E Market Cap
188.67 189.35 188.89 +2.39 58K 25 7.0B

MTN Dividend-Like Income Using Covered Calls

With MTN at 188.89, 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% 5.67 1.6
5% 9.44 2.6
10% 18.89 5.2

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 MTN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 190.00 8.00 53 15.1 0.65 (0.3%)
Oct 18 190.00 6.10 25 24.4 0.65 (0.3%)
5% Yield On MTN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 190.00 8.00 53 15.1 0.65 (0.3%)
Oct 18 190.00 6.10 25 24.4 0.65 (0.3%)
10% Yield On MTN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 190.00 8.00 53 15.1 0.65 (0.3%)
Oct 18 190.00 6.10 25 24.4 0.65 (0.3%)

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Want more examples? MTLS Dividend | MTRN Dividend