FDUS Dividend

Although FDUS has a dividend of 0.11 with an ex-dividend date of Mar 20, you can sell covered calls on Fidus Investment Corporation - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:35 PM ET):

Fidus Investment Corporation - Closed End Fund (FDUS)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
21.49	21.51	21.51	-0.32	292K	10	0.7B

FDUS Dividend-Like Income Using Covered Calls

With FDUS at 21.51, 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%	0.65	0.2
5%	1.08	0.3
10%	2.15	0.6

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 FDUS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	22.50	0.10	38	0.3	0.99 (4.6%)
Mar 21	22.18	0.05	11	0.5	0.67 (3.1%)

5% Yield On FDUS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 21	22.18	0.05	11	0.5	0.67 (3.1%)

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Want more examples? FDT Dividend | FDV Dividend