FND Dividend Type Payments
Although FND has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Floor & Decor Holdings, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Floor & Decor Holdings, Inc. (FND) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 60.00 |
63.82 |
61.16 |
-1.75 |
2.0M |
32 |
6.8B |
FND Dividend-Like Income Using Covered Calls
With FND at 61.16, 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% |
1.83 |
0.5 |
| 5% |
3.06 |
0.8 |
| 10% |
6.12 |
1.7 |
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 FND Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
65.00 |
0.40 |
8 |
5.0 |
1.18 (1.9%) |
| Jan 16 |
65.00 |
2.00 |
36 |
5.6 |
1.18 (1.9%) |
| 5% Yield On FND Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
65.00 |
0.40 |
8 |
5.0 |
1.18 (1.9%) |
| Jan 16 |
65.00 |
2.00 |
36 |
5.6 |
1.18 (1.9%) |
| 10% Yield On FND Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
65.00 |
0.40 |
8 |
5.0 |
1.18 (1.9%) |
| Jan 16 |
65.00 |
2.00 |
36 |
5.6 |
1.18 (1.9%) |
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