MD Dividend Type Payments

MEDNAX dividend

Although MD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MEDNAX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:50 PM ET):

MEDNAX (MD)
Bid Ask Last Change Volume P/E Market Cap
47.31 47.33 47.32 -0.82 185K 13 4.5B

MD Dividend-Like Income Using Covered Calls

With MD at 47.32, 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% 1.42 0.4
5% 2.37 0.6
10% 4.73 1.3

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 MD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 55.00 0.30 38 0.8 7.67 (16.2%)
Nov 16 60.00 0.65 94 0.7 12.67 (26.8%)
5% Yield On MD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 55.00 0.30 38 0.8 7.67 (16.2%)
Nov 16 60.00 0.65 94 0.7 12.67 (26.8%)
10% Yield On MD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 50.00 1.10 38 2.9 2.67 (5.6%)
Nov 16 55.00 1.30 94 1.4 7.67 (16.2%)

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Want more examples? MCY Dividend | MDB Dividend