FREL Dividend Type Payments
Although FREL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Fidelity MSCI Real Estate Index ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 1:25 PM ET):
| Fidelity MSCI Real Estate Index ETF (FREL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 26.72 | 26.73 | 26.73 | +0.22 | 75K | - | 0.0B |
FREL Dividend-Like Income Using Covered Calls
With FREL at 26.73, 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% | 0.80 | 0.2 |
| 5% | 1.34 | 0.4 |
| 10% | 2.67 | 0.7 |
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:
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | SEDG dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | RGTI dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | ARDX dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | RUM dividend | |
| 5. | EEM dividend | 10. | IWM dividend | 5. | JOBY dividend | |
Want more examples? FR Dividend | FRI Dividend
