FYT Dividend Type Payments

Although FYT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Small Cap Value AlphaDEX Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:20 PM ET):

First Trust Small Cap Value AlphaDEX Fund (FYT)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
53.36	53.47	53.32	-1.17	2K	-	0.2B

FYT Dividend-Like Income Using Covered Calls

With FYT at 53.32, 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%	1.60	0.4
5%	2.67	0.7
10%	5.33	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:

3% Yield On FYT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	54.00	1.45	98	1.5	0.53 (1.0%)
Jul 18	54.00	2.50	190	1.3	0.53 (1.0%)

5% Yield On FYT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	54.00	1.45	98	1.5	0.53 (1.0%)
Jul 18	54.00	2.50	190	1.3	0.53 (1.0%)

10% Yield On FYT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	54.00	1.45	98	1.5	0.53 (1.0%)
Feb 21	54.00	0.65	43	1.5	0.53 (1.0%)

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Want more examples? FYLD Dividend | FYX Dividend