FSTA Dividend Type Payments
Although FSTA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Fidelity MSCI COnsumer Staples 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 4:16 PM ET):
| Fidelity MSCI COnsumer Staples Index ETF (FSTA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 48.81 | 54.24 | 51.71 | +0.07 | 118K | - | 0.0B |
FSTA Dividend-Like Income Using Covered Calls
With FSTA at 51.71, 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% | 1.55 | 0.4 |
| 5% | 2.59 | 0.7 |
| 10% | 5.17 | 1.4 |
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 Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | FXI dividend | 1. | FSLY dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | TTD dividend | |
| 3. | TLT dividend | 8. | KWEB dividend | 3. | RDDT dividend | |
| 4. | IWM dividend | 9. | SLV dividend | 4. | AUR dividend | |
| 5. | TSLA dividend | 10. | AMD dividend | 5. | ABNB dividend | |
Want more examples? FSS Dividend | FSTR Dividend
