FATE Dividend Type Payments

Although FATE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on FATE THERAPEUTICS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:30 PM ET):

FATE THERAPEUTICS (FATE)
Bid Ask Last Change Volume P/E Market Cap
14.19 14.23 14.19 +0.69 205K - 0.7B

FATE Dividend-Like Income Using Covered Calls

With FATE at 14.19, here's a table showing how big the annual "dividend" (ie. 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% 0.43 0.1
5% 0.71 0.2
10% 1.42 0.4

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:

3% Yield On FATE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 17.50 0.05 32 0.2 3.27 (23.0%)
Feb 15 22.50 0.25 123 0.2 8.27 (58.3%)
5% Yield On FATE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 15.00 0.70 32 2.2 0.77 (5.4%)
Feb 15 22.50 0.25 123 0.2 8.27 (58.3%)
10% Yield On FATE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 15.00 0.70 32 2.2 0.77 (5.4%)
Feb 15 20.00 0.55 123 0.4 5.77 (40.7%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.NBEV dividend
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3.EEM dividend 8.FXI dividend   3.TLRY dividend
4.QQQ dividend 9.AMD dividend   4.UVXY dividend
5.PBR dividend 10.XLF dividend   5.ARWR dividend

Want more examples? FAST Dividend | FAUS Dividend