FXC Dividend Type Payments
Although FXC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco CurrencyShares Canadian Dollar Trust to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:55 AM ET):
| Invesco CurrencyShares Canadian Dollar Trust (FXC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 67.76 | 67.79 | 67.79 | -0.24 | 21K | 41 | 0.2B |
FXC Dividend-Like Income Using Covered Calls
With FXC at 67.79, 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% | 2.03 | 0.6 |
| 5% | 3.39 | 0.9 |
| 10% | 6.78 | 1.9 |
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 FXC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 21 | 68.00 | 0.10 | 12 | 0.8 | 0.21 (0.3%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | GRPN dividend | |
| 3. | IWM dividend | 8. | INTC dividend | 3. | LUMN dividend | |
| 4. | FXI dividend | 9. | TSLA dividend | 4. | KSS dividend | |
| 5. | EEM dividend | 10. | SLV dividend | 5. | SEDG dividend | |
Want more examples? FXB Dividend | FXD Dividend
