FOUR Dividend Type Payments
Although FOUR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Shift4 Payments, 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 Thu 2:40 PM ET):
| Shift4 Payments, Inc. Class A (FOUR) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 98.08 |
98.09 |
98.12 |
-5.58 |
2.8M |
167 |
10B |
FOUR Dividend-Like Income Using Covered Calls
With FOUR at 98.12, 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% |
2.94 |
0.8 |
| 5% |
4.91 |
1.3 |
| 10% |
9.81 |
2.7 |
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 FOUR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
100.00 |
5.20 |
57 |
9.1 |
1.91 (1.9%) |
| Oct 17 |
100.00 |
14.00 |
240 |
5.8 |
1.91 (1.9%) |
| 5% Yield On FOUR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
100.00 |
5.20 |
57 |
9.1 |
1.91 (1.9%) |
| Oct 17 |
100.00 |
14.00 |
240 |
5.8 |
1.91 (1.9%) |
| 10% Yield On FOUR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
100.00 |
5.20 |
57 |
9.1 |
1.91 (1.9%) |
| Oct 17 |
100.00 |
14.00 |
240 |
5.8 |
1.91 (1.9%) |
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