FREL Dividend Type Payments
Although FREL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Fidelity MSCI Real Estate Index ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:15 PM ET):
| Fidelity MSCI Real Estate Index ETF (FREL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 28.22 | 28.23 | 28.22 | -0.65 | 172K | - | 0.0B |
FREL Dividend-Like Income Using Covered Calls
With FREL at 28.22, 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% | 0.85 | 0.2 |
| 5% | 1.41 | 0.4 |
| 10% | 2.82 | 0.8 |
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 FREL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 29.00 | 0.15 | 45 | 0.3 | 0.77 (2.7%) | |
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | EEM dividend | 1. | WOLF dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | UPST dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | PINS dividend | |
| 4. | SPY dividend | 9. | EWZ dividend | 4. | IOVA dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | FSLY dividend | |
Want more examples? FR Dividend | FRI Dividend
