FCX Dividend Type Payments
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 3:20 PM ET):
| Freeport-McMoRan, Inc. (FCX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 40.45 | 40.46 | 40.45 | +0.42 | 8.1M | 29 | 58B |
FCX Dividend-Like Income Using Covered Calls
With FCX at 40.45, 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% | 1.21 | 0.3 |
| 5% | 2.02 | 0.6 |
| 10% | 4.05 | 1.1 |
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 | |
| Feb 7 | 41.00 | 1.21 | 22 | 5.5 | 0.54 (1.3%) | |
| Feb 14 | 41.00 | 1.40 | 29 | 4.8 | 0.54 (1.3%) | |
| 5% Yield On FCX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 41.00 | 1.21 | 22 | 5.5 | 0.54 (1.3%) | |
| Feb 14 | 41.00 | 1.40 | 29 | 4.8 | 0.54 (1.3%) | |
| 10% Yield On FCX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 41.00 | 1.21 | 22 | 5.5 | 0.54 (1.3%) | |
| Feb 14 | 41.00 | 1.40 | 29 | 4.8 | 0.54 (1.3%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | FXI dividend | 1. | RGTI dividend | |
| 2. | TLT dividend | 7. | TSLA dividend | 2. | QUBT dividend | |
| 3. | IWM dividend | 8. | AMZN dividend | 3. | DJT dividend | |
| 4. | SPY dividend | 9. | ASHR dividend | 4. | SOUN dividend | |
| 5. | SLV dividend | 10. | AAPL dividend | 5. | MSTR dividend | |
Want more examples? FCPT Dividend | FDD Dividend
