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 |
| 518.30 | 518.58 | 517.51 | -2.38 | 584K | - | 32B |
MDY Dividend-Like Income Using Covered Calls
With MDY at 517.51, 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% | 15.53 | 4.3 |
| 5% | 25.88 | 7.1 |
| 10% | 51.75 | 14.2 |
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 | |
| May 16 | 520.00 | 10.50 | 22 | 47.7 | 1.42 (0.3%) | |
| Sep 19 | 520.00 | 32.30 | 148 | 21.8 | 1.42 (0.3%) | |
| 5% Yield On MDY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 520.00 | 10.50 | 22 | 47.7 | 1.42 (0.3%) | |
| Sep 19 | 520.00 | 32.30 | 148 | 21.8 | 1.42 (0.3%) | |
| 10% Yield On MDY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 520.00 | 10.50 | 22 | 47.7 | 1.42 (0.3%) | |
| Sep 19 | 520.00 | 32.30 | 148 | 21.8 | 1.42 (0.3%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | XYZ dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | UPST dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | MRNA dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | SNAP dividend | |
| 5. | QQQ dividend | 10. | IBIT dividend | 5. | CGON dividend | |
Want more examples? MDXG Dividend | MDYG Dividend
