Maybe a glitch? I'm sure they are paying it.
MO dividend is a very fat 8.16% now at $3.44 per $42.87 share. As a new trade, you can:
- Buy 1,000 shares of MO for $42.87 ($42,870)
- Sell 10 MO 2023 $35 puts for $4.50 ($4,500)
- Sell 10 MO 2023 $40 calls for $6.25 ($6,250)
That's net $32,120 and the spread pays back $40,000 if called away in two years with a $7,880 (24.5%) profit plus the $3,440 dividend x 2 is another $6,880 (21.4%) so a very nice way to tie up $32,120 to make $14,760 while we wait for MO to get into the hemp/cannabis space.
Webinar time.