MDT Dividend

MEDTRONIC PLC dividend

Although MDT has a dividend of 0.50 with an ex-dividend date of Sep 27, you can sell covered calls on MEDTRONIC PLC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

MEDTRONIC PLC (MDT)
Bid Ask Last Change Volume P/E Market Cap
93.50 97.50 96.46 -0.42 3.1M 42 131B

MDT Dividend-Like Income Using Covered Calls

With MDT at 96.46, 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% 2.89 0.8
5% 4.82 1.3
10% 9.65 2.6

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 MDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 97.50 0.06 3 2.0 0.00 (0.0%)
Sep 28 98.00 0.17 10 1.7 0.50 (0.5%)
5% Yield On MDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 97.50 0.06 3 2.0 0.00 (0.0%)
Sep 28 98.00 0.17 10 1.7 0.50 (0.5%)
10% Yield On MDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 28 97.50 0.29 10 2.9 0.00 (0.0%)
Oct 5 97.50 0.46 17 2.7 0.00 (0.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.CRON dividend
2.SPY dividend 7.EWZ dividend   2.TGTX dividend
3.SPX dividend 8.VXX dividend   3.GERN dividend
4.QQQ dividend 9.FXI dividend   4.CGC dividend
5.XLF dividend 10.FB dividend   5.RHT dividend

Want more examples? MDSO Dividend | MDU Dividend