MGIC Dividend
Although MGIC has a dividend of 0.15 with an ex-dividend date of Dec 15, you can sell covered calls on Magic Software Enterprises Ltd. - Ordinary Shares 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):
| Magic Software Enterprises Ltd. - Ordinary Shares (MGIC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 21.42 | 25.00 | 21.84 | -0.80 | 36K | 29 | 1.1B |
MGIC Dividend-Like Income Using Covered Calls
With MGIC at 21.84, 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% | 0.66 | 0.2 |
| 5% | 1.09 | 0.3 |
| 10% | 2.18 | 0.6 |
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:
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | RZLT dividend | |
| 2. | IWM dividend | 7. | FXI dividend | 2. | ESTC dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | IMNM dividend | |
| 4. | EEM dividend | 9. | GLD dividend | 4. | LITE dividend | |
| 5. | IBIT dividend | 10. | TLT dividend | 5. | VTYX dividend | |
Want more examples? MGEE Dividend | MGK Dividend
