TMUS Dividend

T-Mobile US, Inc. dividend

Although TMUS has a dividend of 1.02 with an ex-dividend date of Feb 27, 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 Wed 1:50 PM ET):

T-Mobile US, Inc. (TMUS)
Bid Ask Last Change Volume P/E Market Cap
202.13 202.22 202.16 +4.48 3.4M 19 221B

TMUS Dividend-Like Income Using Covered Calls

With TMUS at 202.16, 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% 6.06 1.7
5% 10.11 2.8
10% 20.22 5.5

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
Feb 6 202.50 1.91 3 63.7 0.28 (0.1%)
Mar 6 205.00 6.55 31 21.1 2.78 (1.4%)
5% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 6 202.50 1.91 3 63.7 0.28 (0.1%)
Mar 6 205.00 6.55 31 21.1 2.78 (1.4%)
10% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 6 202.50 1.91 3 63.7 0.28 (0.1%)
Mar 6 205.00 6.55 31 21.1 2.78 (1.4%)

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