FYT Dividend Type Payments

First Trust Small Cap Value AlphaDEX Fund dividend

Although FYT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Small Cap Value AlphaDEX Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

First Trust Small Cap Value AlphaDEX Fund (FYT)
Bid Ask Last Change Volume P/E Market Cap
49.34 55.30 52.12 -1.01 3K - 0.1B

FYT Dividend-Like Income Using Covered Calls

With FYT at 52.12, 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% 1.56 0.4
5% 2.61 0.7
10% 5.21 1.4

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 Jul 18 Expiration     Top 5 High Yield
1.NVDA dividend 6.GLD dividend   1.CIFR dividend
2.SLV dividend 7.AAPL dividend   2.TMC dividend
3.SPY dividend 8.TLT dividend   3.CELC dividend
4.TSLA dividend 9.IBIT dividend   4.REPL dividend
5.IWM dividend 10.QQQ dividend   5.ALT dividend

Want more examples? FYLD Dividend | FYX Dividend