FOUR Dividend Type Payments
Although FOUR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Shift4 Payments, 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 Mon 4:16 PM ET):
| Shift4 Payments, Inc. Class A (FOUR) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 68.25 |
69.10 |
68.38 |
-0.72 |
2.0M |
26 |
6.1B |
FOUR Dividend-Like Income Using Covered Calls
With FOUR at 68.38, 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% |
2.05 |
0.6 |
| 5% |
3.42 |
0.9 |
| 10% |
6.84 |
1.9 |
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 FOUR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
100.00 |
0.50 |
47 |
1.1 |
30.90 (45.2%) |
| Nov 21 |
70.00 |
4.20 |
19 |
22.1 |
0.90 (1.3%) |
| 5% Yield On FOUR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
100.00 |
0.50 |
47 |
1.1 |
30.90 (45.2%) |
| Nov 21 |
70.00 |
4.20 |
19 |
22.1 |
0.90 (1.3%) |
| 10% Yield On FOUR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
70.00 |
4.60 |
47 |
9.8 |
0.90 (1.3%) |
| Nov 21 |
70.00 |
4.20 |
19 |
22.1 |
0.90 (1.3%) |
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