FPE Dividend Type Payments

Although FPE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Preferred Securities and Income ETF ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:55 AM ET):

First Trust Preferred Securities and Income ETF ETF (FPE)
Bid Ask Last Change Volume P/E Market Cap
17.71 17.72 17.72 0.00 208K - 0.0B

FPE Dividend-Like Income Using Covered Calls

With FPE at 17.72, 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% 0.53 0.1
5% 0.89 0.2
10% 1.77 0.5

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 Jan 17 Expiration     Top 5 High Yield
1.NVDA dividend 6.TSLA dividend   1.RCAT dividend
2.SLV dividend 7.INTC dividend   2.ASPI dividend
3.SPY dividend 8.XLF dividend   3.SERV dividend
4.AAPL dividend 9.IWM dividend   4.RXRX dividend
5.EEM dividend 10.TLT dividend   5.XP dividend

Want more examples? FOXF Dividend | FPEI Dividend