MDYV Dividend Type Payments
Although MDYV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P 400 Mid Cap Value ETF (based on S&P MidCap 400 Value Index--sym 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 400 Mid Cap Value ETF (based on S&P MidCap 400 Value Index--sym (MDYV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 72.16 |
74.83 |
73.44 |
-0.39 |
121K |
- |
0.2B |
MDYV Dividend-Like Income Using Covered Calls
With MDYV at 73.44, 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% |
2.20 |
0.6 |
| 5% |
3.67 |
1.0 |
| 10% |
7.34 |
2.0 |
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 MDYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
75.00 |
0.90 |
113 |
0.8 |
0.17 (0.2%) |
| Jun 20 |
75.00 |
1.65 |
57 |
2.9 |
0.17 (0.2%) |
| 5% Yield On MDYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
75.00 |
1.65 |
57 |
2.9 |
0.17 (0.2%) |
| 10% Yield On MDYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
75.00 |
1.65 |
57 |
2.9 |
0.17 (0.2%) |
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