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 Wed 11:50 AM ET):

T-Mobile US, Inc. (TMUS)
Bid Ask Last Change Volume P/E Market Cap
233.12 233.25 233.20 -4.14 1.4M 23 270B

TMUS Dividend-Like Income Using Covered Calls

With TMUS at 233.20, 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% 7.00 1.9
5% 11.66 3.2
10% 23.32 6.4

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
Jun 6 235.00 4.85 24 20.2 1.75 (0.8%)
Jun 13 235.00 5.80 31 18.7 1.75 (0.8%)
5% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 235.00 4.85 24 20.2 1.75 (0.8%)
Jun 13 235.00 5.80 31 18.7 1.75 (0.8%)
10% Yield On TMUS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 235.00 4.85 24 20.2 1.75 (0.8%)
Jun 13 235.00 5.80 31 18.7 1.75 (0.8%)

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