FEX Dividend Type Payments
Although FEX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Large Cap Core AlphaDEX Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:25 AM ET):
| First Trust Large Cap Core AlphaDEX Fund (FEX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 120.19 | 120.25 | 120.23 | +0.39 | 14K | - | 1.5B |
FEX Dividend-Like Income Using Covered Calls
With FEX at 120.23, 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% | 3.61 | 1.0 |
| 5% | 6.01 | 1.6 |
| 10% | 12.02 | 3.3 |
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 Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | DAWN dividend | |
| 2. | INTC dividend | 7. | GLD dividend | 2. | RARE dividend | |
| 3. | TLT dividend | 8. | NIO dividend | 3. | ONDS dividend | |
| 4. | IBIT dividend | 9. | NFLX dividend | 4. | QBTS dividend | |
| 5. | AAPL dividend | 10. | SPY dividend | 5. | SOC dividend | |
Want more examples? FET Dividend | FEZ Dividend
