MAIN Dividend


Although MAIN has a dividend of 0.19 with an ex-dividend date of Aug 20, you can sell covered calls on MAIN STREET CAPITAL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 9:55 AM ET):

Bid Ask Last Change Volume P/E Market Cap
40.43 40.46 40.42 +0.11 19K 13 2.4B

MAIN Dividend-Like Income Using Covered Calls

With MAIN at 40.42, here's a table showing how big the annual "dividend" (ie. 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% 1.21 0.3
5% 2.02 0.6
10% 4.04 1.1

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:

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.NVDA dividend
2.EEM dividend 7.FB dividend   2.JWN dividend
3.QQQ dividend 8.FXI dividend   3.AMAT dividend
4.BAC dividend 9.GLD dividend   4.TUR dividend
5.SPX dividend 10.AABA dividend   5.UVXY dividend

Want more examples? MAHIT Dividend | MAN Dividend