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 Mon 3:15 PM ET):
| Global X MLP & Energy Infrastructure ETF (MLPX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 62.11 |
62.14 |
62.14 |
+0.98 |
451K |
- |
1.3B |
MLPX Dividend-Like Income Using Covered Calls
With MLPX at 62.14, 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% |
1.86 |
0.5 |
| 5% |
3.11 |
0.9 |
| 10% |
6.21 |
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 |
| Dec 20 |
62.00 |
0.85 |
33 |
2.2 |
0.00 (0.0%) |
| Jan 17 |
62.00 |
1.20 |
61 |
1.7 |
0.00 (0.0%) |
| 5% Yield On MLPX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
62.00 |
0.85 |
33 |
2.2 |
0.00 (0.0%) |
| Jan 17 |
62.00 |
1.20 |
61 |
1.7 |
0.00 (0.0%) |
| 10% Yield On MLPX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
62.00 |
0.85 |
33 |
2.2 |
0.00 (0.0%) |
| Jan 17 |
62.00 |
1.20 |
61 |
1.7 |
0.00 (0.0%) |
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