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 1:05 PM ET):
Monroe Capital Corporation - Closed End Fund (MRCC) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
7.20 |
7.23 |
7.24 |
+0.03 |
30K |
6.7 |
0.2B |
MRCC Dividend-Like Income Using Covered Calls
With MRCC at 7.24, 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% |
0.22 |
0.1 |
5% |
0.36 |
0.1 |
10% |
0.72 |
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 |
May 17 |
7.50 |
0.05 |
24 |
0.2 |
0.27 (3.7%) |
Jun 21 |
7.50 |
0.10 |
59 |
0.2 |
0.27 (3.7%) |
5% Yield On MRCC Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
7.50 |
0.05 |
24 |
0.2 |
0.27 (3.7%) |
Jun 21 |
7.50 |
0.10 |
59 |
0.2 |
0.27 (3.7%) |
10% Yield On MRCC Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
7.50 |
0.05 |
24 |
0.2 |
0.27 (3.7%) |
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