FIVE Dividend Type Payments
Although FIVE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Five Below, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Five Below, Inc. (FIVE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 136.00 | 140.00 | 138.30 | +0.32 | 974K | 29 | 7.6B |
FIVE Dividend-Like Income Using Covered Calls
With FIVE at 138.30, 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% | 4.15 | 1.1 |
| 5% | 6.92 | 1.9 |
| 10% | 13.83 | 3.8 |
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 FIVE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 140.00 | 0.70 | 3 | 23.3 | 0.00 (0.0%) | |
| Sep 19 | 140.00 | 8.70 | 38 | 22.9 | 0.00 (0.0%) | |
| 5% Yield On FIVE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 140.00 | 0.70 | 3 | 23.3 | 0.00 (0.0%) | |
| Sep 19 | 140.00 | 8.70 | 38 | 22.9 | 0.00 (0.0%) | |
| 10% Yield On FIVE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 140.00 | 0.70 | 3 | 23.3 | 0.00 (0.0%) | |
| Sep 19 | 140.00 | 8.70 | 38 | 22.9 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IBIT dividend | 1. | COHR dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | QUBT dividend | |
| 3. | SPY dividend | 8. | GLD dividend | 3. | DLO dividend | |
| 4. | TSLA dividend | 9. | AMZN dividend | 4. | RCAT dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | CRML dividend | |
Want more examples? FIVA Dividend | FIVN Dividend
