TMUS Dividend

T-Mobile US, Inc. dividend

Although TMUS has a dividend of 0.88 with an ex-dividend date of May 30, you can sell covered calls on T-Mobile US, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

T-Mobile US, Inc. (TMUS)
Bid Ask Last Change Volume P/E Market Cap
261.00 262.50 262.04 +2.40 3.4M 27 296B

TMUS Dividend-Like Income Using Covered Calls

With TMUS at 262.04, 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% 7.86 2.2
5% 13.10 3.6
10% 26.20 7.2

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 TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 262.50 6.80 16 42.5 0.00 (0.0%)
May 9 265.00 7.00 23 30.4 2.50 (1.0%)
5% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 262.50 6.80 16 42.5 0.00 (0.0%)
May 9 265.00 7.00 23 30.4 2.50 (1.0%)
10% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 262.50 6.80 16 42.5 0.00 (0.0%)
May 9 265.00 7.00 23 30.4 2.50 (1.0%)

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