FRME Dividend Type Payments

First Merchants Corporation dividend

Although FRME has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Merchants Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:05 AM ET):

First Merchants Corporation (FRME)
Bid Ask Last Change Volume P/E Market Cap
42.26 42.54 42.41 +4.92 66K 12 2.2B

FRME Dividend-Like Income Using Covered Calls

With FRME at 42.41, 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% 1.27 0.3
5% 2.12 0.6
10% 4.24 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:

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Top 10 Open Interest For Nov 15 Expiration     Top 5 High Yield
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5.IWM dividend 10.QQQ dividend   5.LYFT dividend

Want more examples? FRI Dividend | FRO Dividend