FOA Dividend Type Payments
Although FOA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Finance of America Companies Inc. Class A 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):
| Finance of America Companies Inc. Class A (FOA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 21.85 |
24.26 |
22.84 |
-0.61 |
133K |
- |
0.2B |
FOA Dividend-Like Income Using Covered Calls
With FOA at 22.84, 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% |
0.69 |
0.2 |
| 5% |
1.14 |
0.3 |
| 10% |
2.28 |
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 FOA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
25.00 |
2.30 |
176 |
1.3 |
0.74 (3.2%) |
| May 16 |
25.00 |
1.35 |
85 |
1.6 |
0.74 (3.2%) |
| 5% Yield On FOA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
25.00 |
2.30 |
176 |
1.3 |
0.74 (3.2%) |
| May 16 |
25.00 |
1.35 |
85 |
1.6 |
0.74 (3.2%) |
| 10% Yield On FOA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
25.00 |
2.30 |
176 |
1.3 |
0.74 (3.2%) |
| May 16 |
25.00 |
1.35 |
85 |
1.6 |
0.74 (3.2%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
