MFA Dividend Type Payments
Although MFA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MFA Financial, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| MFA Financial, Inc. (MFA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 9.12 | 9.34 | 9.14 | -0.09 | 880K | - | 0.9B |
MFA Dividend-Like Income Using Covered Calls
With MFA at 9.14, 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% | 0.27 | 0.1 |
| 5% | 0.46 | 0.1 |
| 10% | 0.91 | 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:
| 3% Yield On MFA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 10.00 | 0.25 | 213 | 0.1 | 0.66 (7.2%) | |
| Jan 16 | 10.00 | 0.10 | 94 | 0.1 | 0.66 (7.2%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | BHVN dividend | |
| 2. | IBIT dividend | 7. | SLV dividend | 2. | NB dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | SANA dividend | |
| 4. | GLD dividend | 9. | QQQ dividend | 4. | AREC dividend | |
| 5. | TSLA dividend | 10. | OPEN dividend | 5. | EU dividend | |
Want more examples? MEXX Dividend | MFC Dividend
