FOXA Dividend

TWENTY-FIRST CENTURY FOX dividend

Although FOXA has a dividend of 0.18 with an ex-dividend date of Sep 11, you can sell covered calls on TWENTY-FIRST CENTURY FOX 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):

TWENTY-FIRST CENTURY FOX (FOXA)
Bid Ask Last Change Volume P/E Market Cap
45.22 45.38 45.39 +0.01 6.1M 19 84B

FOXA Dividend-Like Income Using Covered Calls

With FOXA at 45.39, here's a table showing how big the annual "dividend" (ie. 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% 1.36 0.4
5% 2.27 0.6
10% 4.54 1.2

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 FOXA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 48.00 0.95 152 0.6 2.62 (5.8%)
Jan 17 47.00 2.75 516 0.5 1.62 (3.6%)
5% Yield On FOXA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 48.00 0.95 152 0.6 2.62 (5.8%)

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