MGIC Dividend Type Payments
Although MGIC has no upcoming (meaning, Board-approved and announced) dividends, 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 Wed 1:05 PM ET):
| Magic Software Enterprises Ltd. - Ordinary Shares (MGIC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 11.65 | 11.73 | 11.71 | +0.06 | 13K | 17 | 0.6B |
MGIC Dividend-Like Income Using Covered Calls
With MGIC at 11.71, 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% | 0.35 | 0.1 |
| 5% | 0.59 | 0.2 |
| 10% | 1.17 | 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 MGIC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 12.50 | 0.20 | 52 | 0.4 | 0.77 (6.6%) | |
| Feb 21 | 12.50 | 0.60 | 150 | 0.4 | 0.77 (6.6%) | |
| 5% Yield On MGIC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 12.50 | 0.20 | 52 | 0.4 | 0.77 (6.6%) | |
| Feb 21 | 12.50 | 0.60 | 150 | 0.4 | 0.77 (6.6%) | |
| 10% Yield On MGIC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 12.50 | 0.20 | 52 | 0.4 | 0.77 (6.6%) | |
| Feb 21 | 12.50 | 0.60 | 150 | 0.4 | 0.77 (6.6%) | |
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | HYG dividend | 1. | DJT dividend | |
| 2. | IWM dividend | 7. | EEM dividend | 2. | CPRI dividend | |
| 3. | SPY dividend | 8. | FXI dividend | 3. | PTON dividend | |
| 4. | SLV dividend | 9. | GLD dividend | 4. | WVE dividend | |
| 5. | QQQ dividend | 10. | TLT dividend | 5. | WULF dividend | |
Want more examples? MGEE Dividend | MGK Dividend
