FTCS Dividend Type Payments
Although FTCS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Capital Strength ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:45 PM ET):
| First Trust Capital Strength ETF (FTCS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 88.52 | 88.55 | 88.53 | -0.64 | 158K | - | 0.2B |
FTCS Dividend-Like Income Using Covered Calls
With FTCS at 88.53, 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% | 2.66 | 0.7 |
| 5% | 4.43 | 1.2 |
| 10% | 8.85 | 2.4 |
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:
| 3% Yield On FTCS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 89.00 | 2.45 | 232 | 1.1 | 0.45 (0.5%) | |
| May 16 | 89.00 | 1.50 | 141 | 1.1 | 0.45 (0.5%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | XLF dividend | 1. | NMRA dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | QBTS dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | RGTI dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | QUBT dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | ACHR dividend | |
Want more examples? FTC Dividend | FTDR Dividend
