MRCC Dividend Type Payments
Although MRCC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Monroe Capital Corporation - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:00 AM ET):
| Monroe Capital Corporation - Closed End Fund (MRCC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 7.00 | 7.10 | 7.08 | -0.02 | 15K | 9.2 | 0.2B |
MRCC Dividend-Like Income Using Covered Calls
With MRCC at 7.08, 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% | 0.21 | 0.1 |
| 5% | 0.35 | 0.1 |
| 10% | 0.71 | 0.2 |
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 MRCC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 7.50 | 0.05 | 52 | 0.1 | 0.40 (5.6%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | ZETA dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | TDOC dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | ENVX dividend | |
| 4. | SLV dividend | 9. | SNAP dividend | 4. | SMMT dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | RDDT dividend | |
Want more examples? MRC Dividend | MRCY Dividend
