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 Tue 4:16 PM ET):
| Magic Software Enterprises Ltd. - Ordinary Shares (MGIC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 13.83 | 41.49 | 27.54 | -0.14 | 11K | 34 | 1.4B |
MGIC Dividend-Like Income Using Covered Calls
With MGIC at 27.54, 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% | 0.83 | 0.2 |
| 5% | 1.38 | 0.4 |
| 10% | 2.75 | 0.8 |
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:
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | SGML dividend | |
| 2. | IBIT dividend | 7. | SPY dividend | 2. | TE dividend | |
| 3. | INTC dividend | 8. | NFLX dividend | 3. | BHVN dividend | |
| 4. | TLT dividend | 9. | QQQ dividend | 4. | ERAS dividend | |
| 5. | SLV dividend | 10. | GLD dividend | 5. | AAOI dividend | |
Want more examples? MGEE Dividend | MGK Dividend
