MGC Dividend Type Payments


Although MGC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VANGUARD MEGA CAP ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:50 PM ET):

Bid Ask Last Change Volume P/E Market Cap
98.01 98.03 98.11 +0.68 12K - 16B

MGC Dividend-Like Income Using Covered Calls

With MGC at 98.11, 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% 2.94 0.8
5% 4.91 1.3
10% 9.81 2.7

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 MGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 98.00 0.55 39 1.3 0.00 (0.0%)
Oct 19 98.00 0.85 67 1.2 0.00 (0.0%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.DBD dividend
3.QQQ dividend 8.FXI dividend   3.UVXY dividend
4.SPX dividend 9.FB dividend   4.CGC dividend
5.XLF dividend 10.GLD dividend   5.JWN dividend

Want more examples? MGA Dividend | MGD Dividend