MGM Dividend Type Payments
Although MGM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MGM Resorts International to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:55 AM ET):
| MGM Resorts International (MGM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 38.07 | 38.08 | 38.08 | -0.76 | 663K | 17 | 11B |
MGM Dividend-Like Income Using Covered Calls
With MGM at 38.08, 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% | 1.14 | 0.3 |
| 5% | 1.90 | 0.5 |
| 10% | 3.81 | 1.0 |
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 MGM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 38.00 | 1.72 | 22 | 7.5 | 0.00 (0.0%) | |
| Aug 8 | 38.00 | 1.85 | 29 | 6.1 | 0.00 (0.0%) | |
| 5% Yield On MGM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 38.00 | 1.72 | 22 | 7.5 | 0.00 (0.0%) | |
| Aug 8 | 38.00 | 1.85 | 29 | 6.1 | 0.00 (0.0%) | |
| 10% Yield On MGM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 38.00 | 1.72 | 22 | 7.5 | 0.00 (0.0%) | |
| Aug 8 | 38.00 | 1.85 | 29 | 6.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | HTZ dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | HUT dividend | |
| 3. | SPY dividend | 8. | IBIT dividend | 3. | ENVX dividend | |
| 4. | TSLA dividend | 9. | TLT dividend | 4. | RXRX dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | ASTS dividend | |
Want more examples? MGK Dividend | MGMT Dividend
