FND Dividend Type Payments
Although FND has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Floor & Decor Holdings, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Floor & Decor Holdings, Inc. (FND) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 71.16 |
76.36 |
72.50 |
0.00 |
3.0M |
38 |
7.8B |
FND Dividend-Like Income Using Covered Calls
With FND at 72.50, 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% |
2.18 |
0.6 |
| 5% |
3.63 |
1.0 |
| 10% |
7.25 |
2.0 |
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 FND Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
100.00 |
1.25 |
109 |
1.1 |
23.64 (32.6%) |
| May 16 |
77.50 |
1.50 |
18 |
8.3 |
1.14 (1.6%) |
| 5% Yield On FND Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
100.00 |
1.25 |
109 |
1.1 |
23.64 (32.6%) |
| May 16 |
77.50 |
1.50 |
18 |
8.3 |
1.14 (1.6%) |
| 10% Yield On FND Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
77.50 |
6.80 |
109 |
6.2 |
1.14 (1.6%) |
| May 16 |
77.50 |
1.50 |
18 |
8.3 |
1.14 (1.6%) |
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