FCX Dividend Type Payments

Freeport-McMoRan, Inc. dividend

Although FCX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Freeport-McMoRan, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Freeport-McMoRan, Inc. (FCX)
Bid Ask Last Change Volume P/E Market Cap
36.85 37.67 37.35 -0.28 10.9M 29 54B

FCX Dividend-Like Income Using Covered Calls

With FCX at 37.35, 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% 1.12 0.3
5% 1.87 0.5
10% 3.74 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 FCX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 37.50 0.83 8 8.3 0.00 (0.0%)
May 9 38.00 0.98 15 6.5 0.33 (0.9%)
5% Yield On FCX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 37.50 0.83 8 8.3 0.00 (0.0%)
May 9 38.00 0.98 15 6.5 0.33 (0.9%)
10% Yield On FCX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 37.50 0.83 8 8.3 0.00 (0.0%)
May 9 38.00 0.98 15 6.5 0.33 (0.9%)

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