MDYG Dividend Type Payments
Although MDYG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P 400 Mid Cap Growth ETF (based on S&P MidCap 400 Growth Index--s to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:25 AM ET):
| SPDR S&P 400 Mid Cap Growth ETF (based on S&P MidCap 400 Growth Index--s (MDYG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 84.65 |
84.73 |
84.69 |
-0.22 |
14K |
- |
0.4B |
MDYG Dividend-Like Income Using Covered Calls
With MDYG at 84.69, here's a table showing how big the annual "dividend" (i.e. 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% |
2.54 |
0.7 |
| 5% |
4.23 |
1.2 |
| 10% |
8.47 |
2.3 |
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 MDYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
85.00 |
2.80 |
95 |
2.9 |
0.27 (0.3%) |
| Dec 19 |
85.00 |
2.40 |
186 |
1.3 |
0.27 (0.3%) |
| 5% Yield On MDYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
85.00 |
2.80 |
95 |
2.9 |
0.27 (0.3%) |
| Dec 19 |
85.00 |
2.40 |
186 |
1.3 |
0.27 (0.3%) |
| 10% Yield On MDYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
85.00 |
2.80 |
95 |
2.9 |
0.27 (0.3%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
