MSGE Dividend Type Payments
Although MSGE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Madison Square Garden Entertainment Corp. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:40 PM ET):
| Madison Square Garden Entertainment Corp. Class A (MSGE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 38.22 |
38.33 |
38.25 |
-0.37 |
104K |
14 |
1.6B |
MSGE Dividend-Like Income Using Covered Calls
With MSGE at 38.25, 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% |
1.15 |
0.3 |
| 5% |
1.91 |
0.5 |
| 10% |
3.83 |
1.0 |
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 MSGE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
0.70 |
39 |
1.8 |
1.67 (4.4%) |
| Oct 17 |
40.00 |
1.05 |
102 |
1.0 |
1.67 (4.4%) |
| 5% Yield On MSGE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
0.70 |
39 |
1.8 |
1.67 (4.4%) |
| Oct 17 |
40.00 |
1.05 |
102 |
1.0 |
1.67 (4.4%) |
| 10% Yield On MSGE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
0.70 |
39 |
1.8 |
1.67 (4.4%) |
| Jan 16 |
40.00 |
2.95 |
193 |
1.5 |
1.67 (4.4%) |
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