FSS Dividend
Although FSS has a dividend of 0.14 with an ex-dividend date of May 16, you can sell covered calls on Federal Signal Corporation 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):
| Federal Signal Corporation (FSS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 30.30 | 92.80 | 75.46 | +1.83 | 560K | 21 | 4.5B |
FSS Dividend-Like Income Using Covered Calls
With FSS at 75.46, 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% | 2.26 | 0.6 |
| 5% | 3.77 | 1.0 |
| 10% | 7.55 | 2.1 |
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 FSS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 95.00 | 1.75 | 213 | 0.8 | 2.20 (2.9%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| 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. | APLD dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | SMCI dividend | |
| 5. | QQQ dividend | 10. | IBIT dividend | 5. | HTZ dividend | |
Want more examples? FSP Dividend | FSTA Dividend
