FPX Dividend Type Payments
Although FPX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust US Equity Opportunities ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| First Trust US Equity Opportunities ETF (FPX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 118.47 | 124.53 | 118.46 | +4.48 | 20K | - | 1.3B |
FPX Dividend-Like Income Using Covered Calls
With FPX at 118.46, 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% | 3.55 | 1.0 |
| 5% | 5.92 | 1.6 |
| 10% | 11.85 | 3.2 |
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:
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | EEM dividend | 1. | CLOV dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | WOLF dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | MTCH dividend | |
| 4. | SPY dividend | 9. | EWZ dividend | 4. | UPST dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | RIVN dividend | |
Want more examples? FPI Dividend | FQAL Dividend
