FLWS Dividend Type Payments

1-800 FLOWERS.COM dividend

Although FLWS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on 1-800 FLOWERS.COM to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

1-800 FLOWERS.COM (FLWS)
Bid Ask Last Change Volume P/E Market Cap
10.50 12.00 11.01 -0.34 172K 18 0.7B

FLWS Dividend-Like Income Using Covered Calls

With FLWS at 11.01, 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% 0.33 0.1
5% 0.55 0.2
10% 1.10 0.3

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 FLWS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 12.50 0.05 30 0.2 0.50 (4.5%)
Dec 21 12.50 0.25 65 0.4 0.50 (4.5%)
5% Yield On FLWS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 12.50 0.05 30 0.2 0.50 (4.5%)
Dec 21 12.50 0.25 65 0.4 0.50 (4.5%)
10% Yield On FLWS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 12.50 0.25 65 0.4 0.50 (4.5%)
Mar 15 12.50 0.75 149 0.5 0.50 (4.5%)

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