FSMD Dividend Type Payments
Although FSMD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Fidelity Small-Mid Multifactor ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:35 PM ET):
| Fidelity Small-Mid Multifactor ETF (FSMD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 37.35 | 37.48 | 37.48 | +0.44 | 344K | - | 0.0B |
FSMD Dividend-Like Income Using Covered Calls
With FSMD at 37.48, 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% | 1.12 | 0.3 |
| 5% | 1.87 | 0.5 |
| 10% | 3.75 | 1.0 |
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 FSMD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 38.00 | 0.50 | 115 | 0.4 | 0.52 (1.4%) | |
| Nov 21 | 38.00 | 1.00 | 213 | 0.5 | 0.52 (1.4%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | ROKU dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | UPST dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | FSLY dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | APLD dividend | |
| 5. | QQQ dividend | 10. | IBIT dividend | 5. | ASTS dividend | |
Want more examples? FSMB Dividend | FSP Dividend
