DividendInvestor.com reports a $0.167-per-share distribution for Roundhill Magnificent Seven Covered Call ETF (MAGY) on Monday, Oct. 19, with Friday, Oct. 16, set as the record and ex-dividend date.
Roundhill does not guarantee that MAGY will make weekly distributions. The fund holds shares in Roundhill Magnificent Seven ETF (MAGS) and sells call options tied to those holdings as an income strategy. The options can generate premiums while limiting gains if MAGS rises above a strike price and leaving MAGY exposed to declines in MAGS.
Roundhill says MAGY distributions may include a return of capital. The fund says it will determine the final tax treatment after its fiscal year ends and report it to shareholders on Form 1099-DIV.
