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 4:16 PM ET):
| Madison Square Garden Entertainment Corp. Class A (MSGE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 35.05 |
37.16 |
36.24 |
+0.28 |
264K |
10 |
1.5B |
MSGE Dividend-Like Income Using Covered Calls
With MSGE at 36.24, 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% |
1.09 |
0.3 |
| 5% |
1.81 |
0.5 |
| 10% |
3.62 |
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 |
| Jul 18 |
40.00 |
1.00 |
179 |
0.6 |
2.84 (7.8%) |
| Feb 21 |
40.00 |
0.35 |
32 |
1.1 |
2.84 (7.8%) |
| 5% Yield On MSGE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 18 |
40.00 |
1.00 |
179 |
0.6 |
2.84 (7.8%) |
| Feb 21 |
40.00 |
0.35 |
32 |
1.1 |
2.84 (7.8%) |
| 10% Yield On MSGE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 21 |
40.00 |
0.35 |
32 |
1.1 |
2.84 (7.8%) |
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