MRCC Dividend

Although MRCC has a dividend of 0.25 with an ex-dividend date of Mar 14, you can sell covered calls on Monroe Capital Corporation - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Monroe Capital Corporation - Closed End Fund (MRCC)
Bid Ask Last Change Volume P/E Market Cap
8.04 8.20 8.14 -0.02 50K 11 0.2B

MRCC Dividend-Like Income Using Covered Calls

With MRCC at 8.14, 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% 0.24 0.1
5% 0.41 0.1
10% 0.81 0.2

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:

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Top 10 Open Interest For Mar 21 Expiration     Top 5 High Yield
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Want more examples? MRC Dividend | MRCY Dividend