MDY Dividend Type Payments
Although MDY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P MidCap 400 ETF Trust to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| SPDR S&P MidCap 400 ETF Trust (MDY) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 582.50 | 585.19 | 582.43 | +3.09 | 392K | - | 36B |
MDY Dividend-Like Income Using Covered Calls
With MDY at 582.43, 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% | 17.47 | 4.8 |
| 5% | 29.12 | 8.0 |
| 10% | 58.24 | 16.0 |
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 MDY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 585.00 | 11.60 | 44 | 25.9 | 0.00 (0.0%) | |
| Jul 18 | 585.00 | 5.00 | 16 | 30.1 | 0.00 (0.0%) | |
| 5% Yield On MDY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 585.00 | 11.60 | 44 | 25.9 | 0.00 (0.0%) | |
| Jul 18 | 585.00 | 5.00 | 16 | 30.1 | 0.00 (0.0%) | |
| 10% Yield On MDY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 585.00 | 11.60 | 44 | 25.9 | 0.00 (0.0%) | |
| Jul 18 | 585.00 | 5.00 | 16 | 30.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | QUBT dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | IONQ dividend | |
| 4. | IWM dividend | 9. | IBIT dividend | 4. | TMC dividend | |
| 5. | TSLA dividend | 10. | QQQ dividend | 5. | SMMT dividend | |
Want more examples? MDXG Dividend | MDYG Dividend
