WMC Dividend Type Payments

Western Asset MTG dividend

Although WMC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Western Asset MTG to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 9:45 AM ET):

Western Asset MTG (WMC)
Bid Ask Last Change Volume P/E Market Cap
9.24 9.26 9.24 +0.20 32K - 0.0B

WMC Dividend-Like Income Using Covered Calls

With WMC at 9.24, 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% 0.28 0.1
5% 0.46 0.1
10% 0.92 0.3

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:

Want to increase dividends with covered calls?  Sign Up For A Free Trial

Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? WMB Dividend | WMCR Dividend