MGY Dividend Type Payments
Although MGY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Magnolia Oil & Gas Corporation Class A 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):
| Magnolia Oil & Gas Corporation Class A (MGY) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 23.00 |
23.91 |
23.41 |
-0.09 |
1.7M |
12 |
4.6B |
MGY Dividend-Like Income Using Covered Calls
With MGY at 23.41, 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% |
0.70 |
0.2 |
| 5% |
1.17 |
0.3 |
| 10% |
2.34 |
0.6 |
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 MGY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
25.00 |
0.45 |
49 |
0.9 |
1.09 (4.7%) |
| Sep 19 |
25.00 |
1.55 |
204 |
0.8 |
1.09 (4.7%) |
| 5% Yield On MGY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
25.00 |
0.45 |
49 |
0.9 |
1.09 (4.7%) |
| Sep 19 |
25.00 |
1.55 |
204 |
0.8 |
1.09 (4.7%) |
| 10% Yield On MGY Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
25.00 |
0.45 |
49 |
0.9 |
1.09 (4.7%) |
| Sep 19 |
25.00 |
1.55 |
204 |
0.8 |
1.09 (4.7%) |
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