FXO Dividend Type Payments
Although FXO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Financials AlphaDEX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| First Trust Financials AlphaDEX (FXO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 53.30 | 55.44 | 54.43 | -0.10 | 145K | - | 1.5B |
FXO Dividend-Like Income Using Covered Calls
With FXO at 54.43, 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% | 1.63 | 0.4 |
| 5% | 2.72 | 0.7 |
| 10% | 5.44 | 1.5 |
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 Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | XLF dividend | 1. | JSPR dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | QBTS dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | QSI dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | IONQ dividend | |
| 5. | INTC dividend | 10. | QQQ dividend | 5. | HCAT dividend | |
Want more examples? FXN Dividend | FXP Dividend
