FDS Dividend Type Payments

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

FactSet Research Systems Inc. (FDS)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
415.74	455.00	431.17	-11.74	365K	32	17B

FDS Dividend-Like Income Using Covered Calls

With FDS at 431.17, 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%	12.94	3.5
5%	21.56	5.9
10%	43.12	11.8

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 FDS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	460.00	5.70	38	15.0	5.00 (1.2%)
Sep 19	460.00	19.10	193	9.9	5.00 (1.2%)

5% Yield On FDS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	460.00	5.70	38	15.0	5.00 (1.2%)
Sep 19	460.00	19.10	193	9.9	5.00 (1.2%)

10% Yield On FDS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	460.00	5.70	38	15.0	5.00 (1.2%)
Mar 21	470.00	1.40	11	12.7	15.00 (3.5%)

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Want more examples? FDRR Dividend | FDT Dividend