MDY Dividend Type Payments
Although MDY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR MidCap Trust Series I to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
SPDR MidCap Trust Series I (MDY) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
566.57 | 566.71 | 566.52 | -3.89 | 1.0M | - | 35B |
MDY Dividend-Like Income Using Covered Calls
With MDY at 566.52, 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% | 17.00 | 4.7 |
5% | 28.33 | 7.8 |
10% | 56.65 | 15.5 |
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:
3% Yield On MDY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 565.00 | 17.50 | 57 | 27.7 | 0.00 (0.0%) | |
Oct 18 | 565.00 | 11.70 | 29 | 34.4 | 0.00 (0.0%) |
5% Yield On MDY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 565.00 | 17.50 | 57 | 27.7 | 0.00 (0.0%) | |
Oct 18 | 565.00 | 11.70 | 29 | 34.4 | 0.00 (0.0%) |
10% Yield On MDY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 565.00 | 17.50 | 57 | 27.7 | 0.00 (0.0%) | |
Oct 18 | 565.00 | 11.70 | 29 | 34.4 | 0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | RLAY dividend | |
2. | IWM dividend | 7. | GLD dividend | 2. | LUNR dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | MARA dividend | |
4. | QQQ dividend | 9. | EEM dividend | 4. | CPRI dividend | |
5. | HYG dividend | 10. | AAPL dividend | 5. | MBLY dividend |
Want more examples? MDXG Dividend | MDYG Dividend