FNV Dividend Type Payments

Franco-Nevada Corporation dividend

Although FNV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Franco-Nevada Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:55 AM ET):

Franco-Nevada Corporation (FNV)
Bid Ask Last Change Volume P/E Market Cap
121.20 121.33 121.25 +0.78 247K - 23B

FNV Dividend-Like Income Using Covered Calls

With FNV at 121.25, 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% 3.64 1.0
5% 6.06 1.7
10% 12.13 3.3

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 FNV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 125.00 3.10 30 10.3 3.67 (3.0%)
Jun 21 125.00 5.00 65 7.7 3.67 (3.0%)
5% Yield On FNV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 125.00 3.10 30 10.3 3.67 (3.0%)
Jun 21 125.00 5.00 65 7.7 3.67 (3.0%)
10% Yield On FNV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 125.00 3.10 30 10.3 3.67 (3.0%)
Jun 21 125.00 5.00 65 7.7 3.67 (3.0%)

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