FEP Dividend Type Payments

First Trust Europe AlphaDEX Fund dividend

Although FEP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Europe AlphaDEX Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:35 PM ET):

First Trust Europe AlphaDEX Fund (FEP)
Bid Ask Last Change Volume P/E Market Cap
35.46 35.51 35.46 -0.08 15K - 0.3B

FEP Dividend-Like Income Using Covered Calls

With FEP at 35.46, 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% 1.06 0.3
5% 1.77 0.5
10% 3.55 1.0

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:

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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.SERV dividend
3.XLF dividend 8.TLT dividend   3.CLSK dividend
4.QQQ dividend 9.TSLA dividend   4.PAYO dividend
5.FXI dividend 10.KWEB dividend   5.CIFR dividend

Want more examples? FENY Dividend | FET Dividend