FRT Dividend Type Payments
Although FRT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Federal Realty Investment Trust to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
Federal Realty Investment Trust (FRT) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
90.00 | 98.41 | 93.57 | +1.28 | 842K | 27 | 7.9B |
FRT Dividend-Like Income Using Covered Calls
With FRT at 93.57, 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% | 2.81 | 0.8 |
5% | 4.68 | 1.3 |
10% | 9.36 | 2.6 |
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 FRT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 100.00 | 1.25 | 116 | 1.1 | 1.59 (1.7%) | |
Jun 20 | 100.00 | 1.20 | 60 | 2.0 | 1.59 (1.7%) |
5% Yield On FRT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 20 | 100.00 | 1.20 | 60 | 2.0 | 1.59 (1.7%) | |
Nov 21 | 100.00 | 3.10 | 214 | 1.4 | 1.59 (1.7%) |
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Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | GLD dividend | 1. | STLA dividend | |
2. | SPY dividend | 7. | IWM dividend | 2. | APLD dividend | |
3. | TLT dividend | 8. | FXI dividend | 3. | FSLR dividend | |
4. | SLV dividend | 9. | TSLA dividend | 4. | UPST dividend | |
5. | QQQ dividend | 10. | IBIT dividend | 5. | NMAX dividend |
Want more examples? FRSH Dividend | FSK Dividend