FDX Dividend Type Payments

FedEx Corp dividend

Although FDX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on FedEx Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:20 PM ET):

FedEx Corp (FDX)
Bid Ask Last Change Volume P/E Market Cap
188.85 188.98 188.92 -4.01 1.9M - 0.0B

FDX Dividend-Like Income Using Covered Calls

With FDX at 188.92, 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% 5.67 1.6
5% 9.45 2.6
10% 18.89 5.2

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 FDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 202.50 0.13 4 3.3 13.52 (7.2%)
Dec 21 217.50 0.20 11 1.8 28.52 (15.1%)
5% Yield On FDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 202.50 0.13 4 3.3 13.52 (7.2%)
Dec 21 215.00 0.30 11 2.7 26.02 (13.8%)
10% Yield On FDX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 200.00 0.29 4 7.3 11.02 (5.8%)
Dec 21 210.00 0.63 11 5.7 21.02 (11.1%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? FDVV Dividend | FE Dividend