MTGE Dividend Type Payments

MTG INVESTMENT CORP COMMON dividend

Although MTGE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MTG INVESTMENT CORP COMMON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:00 PM ET):

MTG INVESTMENT CORP COMMON (MTGE)
Bid Ask Last Change Volume P/E Market Cap
19.75 19.80 19.77 +0.02 94K 15 0.9B

MTGE Dividend-Like Income Using Covered Calls

With MTGE at 19.77, 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% 0.59 0.2
5% 0.99 0.3
10% 1.98 0.5

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:

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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.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.VIAV dividend
4.SPX dividend 9.FB dividend   4.JWN dividend
5.XLF dividend 10.GLD dividend   5.CGC dividend

Want more examples? MTG Dividend | MTH Dividend