FOXA Dividend Type Payments

TWENTY-FIRST CENTURY FOX dividend

Although FOXA has no upcoming (meaning, Board-approved and announced) dividends, 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 Fri 1:50 PM ET):

TWENTY-FIRST CENTURY FOX (FOXA)
Bid Ask Last Change Volume P/E Market Cap
45.72 45.73 45.73 -0.08 6.4M 19 85B

FOXA Dividend-Like Income Using Covered Calls

With FOXA at 45.73, 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% 1.37 0.4
5% 2.29 0.6
10% 4.57 1.3

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 FOXA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 47.00 0.15 29 0.5 1.27 (2.8%)
Nov 23 46.00 0.45 36 1.3 0.27 (0.6%)
5% Yield On FOXA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 46.00 0.75 29 2.6 0.27 (0.6%)
Nov 23 46.00 0.45 36 1.3 0.27 (0.6%)
10% Yield On FOXA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 46.00 0.75 29 2.6 0.27 (0.6%)
Jan 18 46.00 1.65 92 1.8 0.27 (0.6%)

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Want more examples? FOX Dividend | FOXF Dividend