FPH Dividend Type Payments
Although FPH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Five Point Holdings, LLC Class A Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
Five Point Holdings, LLC Class A Common Shares (FPH) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
3.60 | 4.15 | 3.76 | +0.06 | 127K | - | 0.5B |
FPH Dividend-Like Income Using Covered Calls
With FPH at 3.76, 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% | 0.11 | 0.0 |
5% | 0.19 | 0.1 |
10% | 0.38 | 0.1 |
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 FPH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jul 18 | 5.00 | 0.10 | 185 | 0.1 | 0.85 (22.6%) |
5% Yield On FPH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jul 18 | 5.00 | 0.10 | 185 | 0.1 | 0.85 (22.6%) |
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