MED Dividend Type Payments

MEDIFAST dividend

Although MED has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MEDIFAST to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:40 AM ET):

MEDIFAST (MED)
Bid Ask Last Change Volume P/E Market Cap
202.12 202.81 202.55 -9.23 79K 63 2.5B

MED Dividend-Like Income Using Covered Calls

With MED at 202.55, 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% 6.08 1.7
5% 10.13 2.8
10% 20.26 5.5

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 MED Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 270.00 0.65 25 2.6 67.19 (33.2%)
Dec 21 280.00 1.20 60 2.0 77.19 (38.1%)
5% Yield On MED Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 250.00 1.30 25 5.2 47.19 (23.3%)
Dec 21 270.00 1.95 60 3.3 67.19 (33.2%)
10% Yield On MED Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 240.00 2.70 25 10.8 37.19 (18.4%)
Dec 21 250.00 3.80 60 6.3 47.19 (23.3%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
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Want more examples? MDYV Dividend | MEDP Dividend