MDY Dividend Type Payments

SPDR S&P MID-CAP 400 dividend

Although MDY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P MID-CAP 400 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

SPDR S&P MID-CAP 400 (MDY)
Bid Ask Last Change Volume P/E Market Cap
315.23 317.25 316.27 -4.39 2.6M - 0.0B

MDY Dividend-Like Income Using Covered Calls

With MDY at 316.27, 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% 9.49 2.6
5% 15.81 4.3
10% 31.63 8.7

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 MDY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 327.50 0.30 8 3.8 10.25 (3.2%)
Dec 28 327.50 0.60 15 4.0 10.25 (3.2%)
5% Yield On MDY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 325.00 0.60 8 7.5 7.75 (2.5%)
Dec 28 325.00 1.15 15 7.7 7.75 (2.5%)
10% Yield On MDY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 322.50 1.15 8 14.4 5.25 (1.7%)
Dec 28 322.50 1.75 15 11.7 5.25 (1.7%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
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3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? MDXG Dividend | MDYG Dividend