MRCC Dividend
Although MRCC has a dividend of 0.25 with an ex-dividend date of Jun 16, you can sell covered calls on Monroe Capital Corporation - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Monroe Capital Corporation - Closed End Fund (MRCC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 6.62 | 6.74 | 6.69 | +0.01 | 82K | 20 | 0.1B |
MRCC Dividend-Like Income Using Covered Calls
With MRCC at 6.69, 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% | 0.20 | 0.1 |
| 5% | 0.33 | 0.1 |
| 10% | 0.67 | 0.2 |
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 Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | AES dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | DYN dividend | |
| 3. | QQQ dividend | 8. | EEM dividend | 3. | RUN dividend | |
| 4. | SLV dividend | 9. | FXI dividend | 4. | ALT dividend | |
| 5. | IWM dividend | 10. | TLT dividend | 5. | CAPR dividend | |
Want more examples? MRC Dividend | MRCY Dividend
