FLEX Dividend Type Payments
Although FLEX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Flex Ltd. - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:15 AM ET):
| Flex Ltd. - Ordinary Shares (FLEX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 61.90 | 61.94 | 61.92 | -0.64 | 290K | 28 | 23B |
FLEX Dividend-Like Income Using Covered Calls
With FLEX at 61.92, 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% | 1.86 | 0.5 |
| 5% | 3.10 | 0.8 |
| 10% | 6.19 | 1.7 |
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 FLEX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 65.00 | 5.60 | 137 | 4.1 | 3.06 (4.9%) | |
| Jan 16 | 65.00 | 0.80 | 18 | 4.4 | 3.06 (4.9%) | |
| 5% Yield On FLEX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 65.00 | 5.60 | 137 | 4.1 | 3.06 (4.9%) | |
| Jan 16 | 65.00 | 0.80 | 18 | 4.4 | 3.06 (4.9%) | |
| 10% Yield On FLEX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 65.00 | 5.60 | 137 | 4.1 | 3.06 (4.9%) | |
| Jan 16 | 65.00 | 0.80 | 18 | 4.4 | 3.06 (4.9%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | PGR dividend | |
| 2. | INTC dividend | 7. | GLD dividend | 2. | IMRX dividend | |
| 3. | IBIT dividend | 8. | SPY dividend | 3. | ASTS dividend | |
| 4. | TLT dividend | 9. | NIO dividend | 4. | LUNR dividend | |
| 5. | SLV dividend | 10. | NFLX dividend | 5. | AG dividend | |
Want more examples? FLEU Dividend | FLG Dividend
