FN Dividend Type Payments

Although FN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Fabrinet Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:40 PM ET):

Fabrinet Ordinary Shares (FN)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
396.70	399.03	399.11	-16.88	297K	45	15B

FN Dividend-Like Income Using Covered Calls

With FN at 399.11, 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%	11.97	3.3
5%	19.96	5.5
10%	39.91	10.9

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 FN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	400.00	40.30	59	68.3	0.97 (0.2%)
Nov 21	400.00	34.00	31	109.7	0.97 (0.2%)

5% Yield On FN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	400.00	40.30	59	68.3	0.97 (0.2%)
Nov 21	400.00	34.00	31	109.7	0.97 (0.2%)

10% Yield On FN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	400.00	40.30	59	68.3	0.97 (0.2%)
Nov 21	400.00	34.00	31	109.7	0.97 (0.2%)

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Top 10 Open Interest For Nov 21 Expiration				Top 5 High Yield
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4.	SLV dividend	9.	QQQ dividend	4.	CIFR dividend
5.	GLD dividend	10.	INTC dividend	5.	UPST dividend

Want more examples? FMX Dividend | FNB Dividend