MLPX Dividend Type Payments
Although MLPX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X MLP & Energy Infrastructure ETF 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):
| Global X MLP & Energy Infrastructure ETF (MLPX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 60.48 | 62.21 | 61.17 | +0.64 | 441K | - | 2.7B |
MLPX Dividend-Like Income Using Covered Calls
With MLPX at 61.17, 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% | 1.84 | 0.5 |
| 5% | 3.06 | 0.8 |
| 10% | 6.12 | 1.7 |
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 MLPX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 18 | 63.00 | 1.10 | 168 | 0.7 | 0.79 (1.3%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | IMRX dividend | |
| 2. | INTC dividend | 7. | GLD dividend | 2. | DAWN dividend | |
| 3. | IBIT dividend | 8. | SPY dividend | 3. | LUNR dividend | |
| 4. | SLV dividend | 9. | NIO dividend | 4. | ONDS dividend | |
| 5. | TLT dividend | 10. | NFLX dividend | 5. | MARA dividend | |
Want more examples? MLPR Dividend | MLR Dividend
