FIS Dividend Type Payments
Although FIS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Fidelity National Information Services, 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):
| Fidelity National Information Services, Inc. (FIS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 65.97 | 66.62 | 66.62 | +0.01 | 2.2M | 238 | 35B |
FIS Dividend-Like Income Using Covered Calls
With FIS at 66.62, 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% | 2.00 | 0.5 |
| 5% | 3.33 | 0.9 |
| 10% | 6.66 | 1.8 |
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 FIS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 67.00 | 0.35 | 4 | 8.8 | 0.38 (0.6%) | |
| Dec 26 | 67.00 | 0.90 | 11 | 8.2 | 0.38 (0.6%) | |
| 5% Yield On FIS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 67.00 | 0.35 | 4 | 8.8 | 0.38 (0.6%) | |
| Dec 26 | 67.00 | 0.90 | 11 | 8.2 | 0.38 (0.6%) | |
| 10% Yield On FIS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 67.00 | 0.35 | 4 | 8.8 | 0.38 (0.6%) | |
| Dec 26 | 67.00 | 0.90 | 11 | 8.2 | 0.38 (0.6%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | EWTX dividend | |
| 3. | IBIT dividend | 8. | NFLX dividend | 3. | RGTI dividend | |
| 4. | QQQ dividend | 9. | XLF dividend | 4. | NNE dividend | |
| 5. | TLT dividend | 10. | AMZN dividend | 5. | ABAT dividend | |
Want more examples? FINV Dividend | FISI Dividend
