FE Dividend Type Payments

FirstEnergy Corp. dividend

Although FE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on FirstEnergy Corp. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:15 PM ET):

FirstEnergy Corp. (FE)
Bid Ask Last Change Volume P/E Market Cap
43.78 43.79 43.78 -0.02 1.0M 23 25B

FE Dividend-Like Income Using Covered Calls

With FE at 43.78, 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% 1.31 0.4
5% 2.19 0.6
10% 4.38 1.2

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 FE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 44.00 0.75 33 2.3 0.21 (0.5%)
Sep 19 44.00 0.20 5 4.0 0.21 (0.5%)
5% Yield On FE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 44.00 0.75 33 2.3 0.21 (0.5%)
Sep 19 44.00 0.20 5 4.0 0.21 (0.5%)
10% Yield On FE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 44.00 0.75 33 2.3 0.21 (0.5%)
Sep 19 44.00 0.20 5 4.0 0.21 (0.5%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Sep 19 Expiration     Top 5 High Yield
1.NVDA dividend 6.EEM dividend   1.QURE dividend
2.SPY dividend 7.QQQ dividend   2.OPEN dividend
3.IWM dividend 8.TSLA dividend   3.FDX dividend
4.PCG dividend 9.SLV dividend   4.CBRL dividend
5.IBIT dividend 10.FXI dividend   5.AVDL dividend

Want more examples? FDX Dividend | FELE Dividend