FIS Dividend Type Payments

FIDELITY NATIONAL INFO dividend

Although FIS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on FIDELITY NATIONAL INFO 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):

FIDELITY NATIONAL INFO (FIS)
Bid Ask Last Change Volume P/E Market Cap
103.69 107.36 103.75 -0.32 922K 24 34B

FIS Dividend-Like Income Using Covered Calls

With FIS at 103.75, 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% 3.11 0.9
5% 5.19 1.4
10% 10.38 2.8

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
Nov 16 110.00 0.70 29 2.4 2.64 (2.5%)
Jan 18 110.00 1.63 92 1.8 2.64 (2.5%)
5% Yield On FIS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 110.00 0.70 29 2.4 2.64 (2.5%)
Jan 18 110.00 1.63 92 1.8 2.64 (2.5%)

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Want more examples? FINZ Dividend | FISI Dividend