FFIV Dividend Type Payments

F5 NETWORKS dividend

Although FFIV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on F5 NETWORKS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

F5 NETWORKS (FFIV)
Bid Ask Last Change Volume P/E Market Cap
171.00 182.00 180.68 +2.06 556K 24 11B

FFIV Dividend-Like Income Using Covered Calls

With FFIV at 180.68, 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% 5.42 1.5
5% 9.03 2.5
10% 18.07 5.0

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 FFIV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 190.00 0.12 8 1.5 8.00 (4.4%)
Aug 31 190.00 0.47 15 3.1 8.00 (4.4%)
5% Yield On FFIV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 187.50 0.27 8 3.4 5.50 (3.0%)
Aug 31 190.00 0.47 15 3.1 8.00 (4.4%)
10% Yield On FFIV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 185.00 0.61 8 7.6 3.00 (1.7%)
Aug 31 187.50 0.79 15 5.3 5.50 (3.0%)

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