MBIN Dividend Type Payments

Although MBIN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MERCHANTS BANCORP COMMON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

MERCHANTS BANCORP COMMON (MBIN)
Bid Ask Last Change Volume P/E Market Cap
26.17 26.14 26.17 +0.45 84K 13 0.7B

MBIN Dividend-Like Income Using Covered Calls

With MBIN at 26.17, 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% 0.79 0.2
5% 1.31 0.4
10% 2.62 0.7

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 MBIN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 30.00 0.30 95 0.3 3.86 (14.7%)
Feb 15 30.00 0.75 186 0.4 3.86 (14.7%)
5% Yield On MBIN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 30.00 0.75 186 0.4 3.86 (14.7%)

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

Want more examples? MBI Dividend | MBIO Dividend