FOA Dividend Type Payments
Although FOA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Finance of America Companies Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Finance of America Companies Inc. Class A (FOA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 20.75 |
22.44 |
22.00 |
+0.37 |
66K |
- |
0.2B |
FOA Dividend-Like Income Using Covered Calls
With FOA at 22.00, 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% |
0.66 |
0.2 |
| 5% |
1.10 |
0.3 |
| 10% |
2.20 |
0.6 |
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 FOA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
22.50 |
1.45 |
50 |
2.9 |
0.06 (0.3%) |
| Nov 21 |
22.50 |
0.90 |
22 |
4.1 |
0.06 (0.3%) |
| 5% Yield On FOA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
22.50 |
1.45 |
50 |
2.9 |
0.06 (0.3%) |
| Nov 21 |
22.50 |
0.90 |
22 |
4.1 |
0.06 (0.3%) |
| 10% Yield On FOA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
22.50 |
1.45 |
50 |
2.9 |
0.06 (0.3%) |
| Nov 21 |
22.50 |
0.90 |
22 |
4.1 |
0.06 (0.3%) |
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