BEN Dividend Type Payments

Franklin Resources, Inc. dividend

Although BEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Franklin Resources, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Franklin Resources, Inc. (BEN)
Bid Ask Last Change Volume P/E Market Cap
22.50 23.32 22.79 -0.13 4.1M 44 12B

BEN Dividend-Like Income Using Covered Calls

With BEN at 22.79, 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% 0.68 0.2
5% 1.14 0.3
10% 2.28 0.6

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 BEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 24.00 0.10 38 0.3 0.68 (3.0%)
Jan 16 24.00 0.65 94 0.7 0.68 (3.0%)
5% Yield On BEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 25.00 0.15 38 0.4 1.68 (7.4%)
Jan 16 24.00 0.65 94 0.7 0.68 (3.0%)
10% Yield On BEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 24.00 0.65 94 0.7 0.68 (3.0%)

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