MGY Dividend Type Payments
Although MGY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Magnolia Oil & Gas Corporation Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 9:35 AM ET):
| Magnolia Oil & Gas Corporation Class A (MGY) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 22.31 |
22.45 |
22.38 |
-0.46 |
140K |
13 |
4.3B |
MGY Dividend-Like Income Using Covered Calls
With MGY at 22.38, 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% |
0.67 |
0.2 |
| 5% |
1.12 |
0.3 |
| 10% |
2.24 |
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:
| 3% Yield On MGY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
25.00 |
0.65 |
155 |
0.4 |
2.55 (11.4%) |
| Sep 18 |
22.50 |
0.80 |
247 |
0.3 |
0.05 (0.2%) |
| 5% Yield On MGY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
25.00 |
0.65 |
155 |
0.4 |
2.55 (11.4%) |
| Sep 18 |
22.50 |
0.80 |
247 |
0.3 |
0.05 (0.2%) |
| 10% Yield On MGY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 20 |
22.50 |
0.60 |
37 |
1.6 |
0.05 (0.2%) |
| Mar 20 |
22.50 |
0.95 |
65 |
1.5 |
0.05 (0.2%) |
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