MAIN Dividend
Although MAIN has a dividend of 0.25 with an ex-dividend date of Jan 8, you can sell covered calls on Main Street Capital Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Main Street Capital Corporation (MAIN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 57.60 | 59.33 | 57.64 | +0.64 | 439K | 12 | 5.0B |
MAIN Dividend-Like Income Using Covered Calls
With MAIN at 57.64, 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% | 1.73 | 0.5 |
| 5% | 2.88 | 0.8 |
| 10% | 5.76 | 1.6 |
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 MAIN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 59.70 | 1.15 | 177 | 0.6 | 0.37 (0.6%) | |
| Mar 21 | 59.40 | 0.65 | 86 | 0.8 | 0.07 (0.1%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | XLF dividend | 1. | QBTS dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | NMRA dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | RUM dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | QS dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | WULF dividend | |
Want more examples? MAGS Dividend | MAN Dividend
