MDYV Dividend Type Payments
Although MDYV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P 400 Mid Cap Value ETF (based on S&P MidCap 400 Value Index--sym to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:05 PM ET):
| SPDR S&P 400 Mid Cap Value ETF (based on S&P MidCap 400 Value Index--sym (MDYV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 78.97 | 79.04 | 79.05 | +0.14 | 30K | - | 0.2B |
MDYV Dividend-Like Income Using Covered Calls
With MDYV at 79.05, 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% | 2.37 | 0.6 |
| 5% | 3.95 | 1.1 |
| 10% | 7.91 | 2.2 |
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 MDYV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 79.00 | 0.75 | 54 | 1.3 | 0.00 (0.0%) | |
| May 16 | 79.00 | 2.55 | 236 | 1.1 | 0.00 (0.0%) | |
| 5% Yield On MDYV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 79.00 | 0.75 | 54 | 1.3 | 0.00 (0.0%) | |
| Feb 21 | 79.00 | 1.80 | 152 | 1.2 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | DJT dividend | |
| 2. | IWM dividend | 7. | GLD dividend | 2. | CPRI dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | MSTR dividend | |
| 4. | QQQ dividend | 9. | EEM dividend | 4. | WULF dividend | |
| 5. | HYG dividend | 10. | AAPL dividend | 5. | BYND dividend | |
Want more examples? MDYG Dividend | MED Dividend
