FDP Dividend

Fresh Del Monte Produce, Inc. dividend

Although FDP has a dividend of 0.30 with an ex-dividend date of Nov 12, you can sell covered calls on Fresh Del Monte Produce, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:45 AM ET):

Fresh Del Monte Produce, Inc. (FDP)
Bid Ask Last Change Volume P/E Market Cap
34.24 34.31 34.27 -0.04 87K 11 1.6B

FDP Dividend-Like Income Using Covered Calls

With FDP at 34.27, 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% 1.03 0.3
5% 1.71 0.5
10% 3.43 0.9

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 FDP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 35.00 0.65 51 1.3 0.69 (2.0%)
Nov 21 35.00 0.30 23 1.3 0.69 (2.0%)
5% Yield On FDP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 35.00 0.65 51 1.3 0.69 (2.0%)
Nov 21 35.00 0.30 23 1.3 0.69 (2.0%)
10% Yield On FDP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 35.00 0.65 51 1.3 0.69 (2.0%)
Nov 21 35.00 0.30 23 1.3 0.69 (2.0%)

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Top 10 Open Interest For Nov 21 Expiration     Top 5 High Yield
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Want more examples? FDN Dividend | FDRR Dividend