MDYV Dividend Type Payments
Although MDYV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P 400 Mid Cap Value ETF (based on S&P MidCap 400 Value Index--sym to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:35 AM ET):
| SPDR S&P 400 Mid Cap Value ETF (based on S&P MidCap 400 Value Index--sym (MDYV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 74.98 |
75.06 |
75.01 |
+1.16 |
9K |
- |
0.2B |
MDYV Dividend-Like Income Using Covered Calls
With MDYV at 75.01, 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% |
2.25 |
0.6 |
| 5% |
3.75 |
1.0 |
| 10% |
7.50 |
2.1 |
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 MDYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
75.00 |
1.45 |
106 |
1.3 |
0.00 (0.0%) |
| Jun 20 |
75.00 |
2.20 |
50 |
4.3 |
0.00 (0.0%) |
| 5% Yield On MDYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
75.00 |
1.45 |
106 |
1.3 |
0.00 (0.0%) |
| Jun 20 |
75.00 |
2.20 |
50 |
4.3 |
0.00 (0.0%) |
| 10% Yield On MDYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
75.00 |
2.20 |
50 |
4.3 |
0.00 (0.0%) |
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