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 | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | WOLF dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | QBTS dividend | |
| 3. | IWM dividend | 8. | INTC dividend | 3. | CLSK dividend | |
| 4. | FXI dividend | 9. | TSLA dividend | 4. | GRPN dividend | |
| 5. | EEM dividend | 10. | SLV dividend | 5. | ADBE dividend | |
Want more examples? MRC Dividend | MRCY Dividend
