MTG Dividend Type Payments

MGIC Investment Corp dividend

Although MTG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MGIC Investment Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

MGIC Investment Corp (MTG)
Bid Ask Last Change Volume P/E Market Cap
13.00 13.32 13.32 +0.03 2.1M 9.2 4.7B

MTG Dividend-Like Income Using Covered Calls

With MTG at 13.32, 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% 0.40 0.1
5% 0.67 0.2
10% 1.33 0.4

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 MTG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 14.00 0.10 24 0.4 0.68 (5.1%)
Apr 18 15.00 0.11 58 0.2 1.68 (12.6%)
5% Yield On MTG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 14.00 0.10 24 0.4 0.68 (5.1%)
Apr 18 15.00 0.11 58 0.2 1.68 (12.6%)
10% Yield On MTG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 14.00 0.10 24 0.4 0.68 (5.1%)
Apr 18 14.00 0.32 58 0.6 0.68 (5.1%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
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Want more examples? MTDR Dividend | MTH Dividend