FORM Dividend Type Payments

FormFactor, Inc. dividend

Although FORM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on FormFactor, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:55 PM ET):

FormFactor, Inc. (FORM)
Bid Ask Last Change Volume P/E Market Cap
55.84 55.96 55.85 +0.90 882K 96 4.2B

FORM Dividend-Like Income Using Covered Calls

With FORM at 55.85, 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% 1.68 0.5
5% 2.79 0.8
10% 5.59 1.5

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 FORM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 60.00 2.15 47 4.6 4.04 (7.2%)
Nov 21 60.00 1.15 19 6.1 4.04 (7.2%)
5% Yield On FORM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 60.00 2.15 47 4.6 4.04 (7.2%)
Nov 21 60.00 1.15 19 6.1 4.04 (7.2%)
10% Yield On FORM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 60.00 2.15 47 4.6 4.04 (7.2%)
Nov 21 60.00 1.15 19 6.1 4.04 (7.2%)

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Want more examples? FOR Dividend | FORR Dividend