FRC Dividend Type Payments

First Republic Bank dividend

Although FRC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Republic Bank to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 9:50 AM ET):

First Republic Bank (FRC)
Bid Ask Last Change Volume P/E Market Cap
101.65 101.75 101.71 -0.29 31K 22 17B

FRC Dividend-Like Income Using Covered Calls

With FRC at 101.71, 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% 3.05 0.8
5% 5.09 1.4
10% 10.17 2.8

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 FRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 105.00 0.70 24 2.9 3.25 (3.2%)
Apr 18 110.00 0.80 58 1.4 8.25 (8.1%)
5% Yield On FRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 105.00 0.70 24 2.9 3.25 (3.2%)
Apr 18 105.00 2.10 58 3.6 3.25 (3.2%)
10% Yield On FRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 105.00 0.70 24 2.9 3.25 (3.2%)
Apr 18 105.00 2.10 58 3.6 3.25 (3.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ROKU dividend
2.EEM dividend 7.GE dividend   2.VIPS dividend
3.SPY dividend 8.BAC dividend   3.FSLR dividend
4.QQQ dividend 9.XOP dividend   4.IQ dividend
5.FXI dividend 10.LLY dividend   5.DBX dividend

Want more examples? FRBK Dividend | FRED Dividend