FICO Dividend Type Payments

Fair Isaac Corproation dividend

Although FICO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Fair Isaac Corproation 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):

Fair Isaac Corproation (FICO)
Bid Ask Last Change Volume P/E Market Cap
230.00 265.51 265.51 +2.93 186K 52 7.6B

FICO Dividend-Like Income Using Covered Calls

With FICO at 265.51, 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% 7.97 2.2
5% 13.28 3.6
10% 26.55 7.3

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:

3% Yield On FICO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 280.00 0.85 24 3.5 14.49 (5.5%)
May 17 290.00 1.80 53 3.4 24.49 (9.2%)
5% Yield On FICO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 270.00 3.70 24 15.4 4.49 (1.7%)
May 17 280.00 3.70 53 7.0 14.49 (5.5%)
10% Yield On FICO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 270.00 3.70 24 15.4 4.49 (1.7%)
May 17 270.00 7.30 53 13.8 4.49 (1.7%)

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Want more examples? FIBK Dividend | FIDI Dividend