FDP Dividend Type Payments

Fresh Del Monte Produce, Inc. dividend

Although FDP has no upcoming (meaning, Board-approved and announced) dividends, 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 11:40 AM ET):

Fresh Del Monte Produce, Inc. (FDP)
Bid Ask Last Change Volume P/E Market Cap
33.15 33.23 33.18 -0.14 59K 98 1.6B

FDP Dividend-Like Income Using Covered Calls

With FDP at 33.18, 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% 1.00 0.3
5% 1.66 0.5
10% 3.32 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
Jan 17 35.00 0.20 30 0.7 1.77 (5.3%)
Jun 20 35.00 1.75 184 1.0 1.77 (5.3%)
5% Yield On FDP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 35.00 0.20 30 0.7 1.77 (5.3%)
Jun 20 35.00 1.75 184 1.0 1.77 (5.3%)
10% Yield On FDP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 35.00 1.75 184 1.0 1.77 (5.3%)
Mar 21 35.00 1.00 93 1.1 1.77 (5.3%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Dec 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.EEM dividend   1.FDX dividend
2.SPY dividend 7.IWM dividend   2.SHCO dividend
3.XLF dividend 8.TLT dividend   3.UPST dividend
4.QQQ dividend 9.TSLA dividend   4.RGTI dividend
5.FXI dividend 10.KWEB dividend   5.CIFR dividend

Want more examples? FDN Dividend | FDRR Dividend