MDY Dividend Type Payments

Although MDY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P MidCap 400 ETF Trust 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):

SPDR S&P MidCap 400 ETF Trust (MDY)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
590.93	591.07	591.11	+2.51	516K	-	36B

MDY Dividend-Like Income Using Covered Calls

With MDY at 591.11, 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%	17.73	4.9
5%	29.56	8.1
10%	59.11	16.2

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:

3% Yield On MDY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	590.00	37.00	246	14.6	0.00 (0.0%)
Dec 19	590.00	45.00	337	13.0	0.00 (0.0%)

5% Yield On MDY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	590.00	37.00	246	14.6	0.00 (0.0%)
Dec 19	590.00	45.00	337	13.0	0.00 (0.0%)

10% Yield On MDY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 20	590.00	27.60	155	17.1	0.00 (0.0%)
Feb 21	590.00	11.00	36	27.6	0.00 (0.0%)

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Want more examples? MDXG Dividend | MDYG Dividend