Yesterday, 1/4/10, I BTC 2 MEE Jan10 34 Covered Calls and STO 2 MEE Jul10 35 Covered Calls for a net deposit of $206.90 in an IRA account.  My basis for these MEE shares is now 31.27, excluding dividends received.

MEE pays a small .06 per quarter dividend, up from .05 per quarter in most of 2008.  The current dividend is about a .52% annual yield on the current market price or about .74% annual yield on my basis.

Because MEE does pay a dividend it does generally meet my investing objectives.  On the other hand, the yield is pretty low.  What mitigates the low yield is the option premium I am able to realize.  In the case of this transaction with the additional option premium and the increase in strike price my return is better than 21% which is addition to the dividends.