FRT Dividend Type Payments
Although FRT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Federal Realty Investment Trust to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:15 PM ET):
| Federal Realty Investment Trust (FRT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 102.17 | 102.26 | 102.18 | +0.53 | 180K | 30 | 8.6B |
FRT Dividend-Like Income Using Covered Calls
With FRT at 102.18, 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% | 3.07 | 0.8 |
| 5% | 5.11 | 1.4 |
| 10% | 10.22 | 2.8 |
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 FRT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 105.00 | 5.50 | 215 | 2.6 | 2.74 (2.7%) | |
| May 16 | 105.00 | 1.80 | 124 | 1.5 | 2.74 (2.7%) | |
| 5% Yield On FRT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 105.00 | 5.50 | 215 | 2.6 | 2.74 (2.7%) | |
| May 16 | 105.00 | 1.80 | 124 | 1.5 | 2.74 (2.7%) | |
| 10% Yield On FRT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 105.00 | 0.20 | 5 | 4.0 | 2.74 (2.7%) | |
| Feb 21 | 105.00 | 1.90 | 40 | 4.8 | 2.74 (2.7%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | EVH dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | AEHR dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | QBTS dividend | |
| 4. | SPY dividend | 9. | IWM dividend | 4. | SERV dividend | |
| 5. | EEM dividend | 10. | TLT dividend | 5. | SWTX dividend | |
Want more examples? FRSH Dividend | FSK Dividend
