MGLN Dividend Type Payments

MAGELLAN HEALTH dividend

Although MGLN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MAGELLAN HEALTH to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 1:30 PM ET):

MAGELLAN HEALTH (MGLN)
Bid Ask Last Change Volume P/E Market Cap
69.79 69.96 69.79 -0.13 55K 15 1.7B

MGLN Dividend-Like Income Using Covered Calls

With MGLN at 69.79, 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% 2.09 0.6
5% 3.49 1.0
10% 6.98 1.9

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 MGLN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 70.00 0.50 3 16.7 0.04 (0.1%)
Nov 16 85.00 0.20 31 0.6 15.04 (21.6%)
5% Yield On MGLN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 70.00 0.50 3 16.7 0.04 (0.1%)
Nov 16 80.00 0.60 31 1.9 10.04 (14.4%)
10% Yield On MGLN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 70.00 0.50 3 16.7 0.04 (0.1%)
Nov 16 80.00 0.60 31 1.9 10.04 (14.4%)

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Want more examples? MGK Dividend | MGLRG Dividend