FCX Dividend

Freeport-McMoRan, Inc. dividend

Although FCX has a dividend of 0.15 with an ex-dividend date of Oct 15, you can sell covered calls on Freeport-McMoRan, Inc. 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):

Freeport-McMoRan, Inc. (FCX)
Bid Ask Last Change Volume P/E Market Cap
42.00 42.19 41.97 -0.81 16.3M 32 61B

FCX Dividend-Like Income Using Covered Calls

With FCX at 41.97, 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% 1.26 0.3
5% 2.10 0.6
10% 4.20 1.1

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 FCX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 42.00 2.12 25 7.7 0.00 (0.0%)
Nov 14 42.00 2.24 32 6.4 0.00 (0.0%)
5% Yield On FCX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 42.00 2.12 25 7.7 0.00 (0.0%)
Nov 14 42.00 2.24 32 6.4 0.00 (0.0%)
10% Yield On FCX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 42.00 2.12 25 7.7 0.00 (0.0%)
Nov 14 42.00 2.24 32 6.4 0.00 (0.0%)

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