FXL Dividend Type Payments

Although FXL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Technology AlphaDEX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:35 AM ET):

First Trust Technology AlphaDEX (FXL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
149.39	149.68	149.32	+0.77	3K	-	3.5B

FXL Dividend-Like Income Using Covered Calls

With FXL at 149.32, 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%	4.48	1.2
5%	7.47	2.0
10%	14.93	4.1

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 FXL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 20	149.00	6.10	170	3.2	0.00 (0.0%)
Feb 21	149.00	1.75	51	2.1	0.00 (0.0%)

5% Yield On FXL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 20	149.00	6.10	170	3.2	0.00 (0.0%)
Feb 21	149.00	1.75	51	2.1	0.00 (0.0%)

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Want more examples? FXI Dividend | FXN Dividend