FTLS Dividend Type Payments
Although FTLS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Long/Short Equity to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:20 AM ET):
| First Trust Long/Short Equity (FTLS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 65.39 | 65.50 | 65.36 | +0.01 | 30K | - | 0.0B |
FTLS Dividend-Like Income Using Covered Calls
With FTLS at 65.36, 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% | 1.96 | 0.5 |
| 5% | 3.27 | 0.9 |
| 10% | 6.54 | 1.8 |
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:
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | IWM dividend | 1. | RIVN dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | UPST dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | IOVA dividend | |
| 4. | SPY dividend | 9. | XLF dividend | 4. | PINS dividend | |
| 5. | EEM dividend | 10. | EWZ dividend | 5. | TOST dividend | |
Want more examples? FTK Dividend | FTNT Dividend
