FREE Dividend Type Payments
Although FREE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Whole Earth Brands, 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 3:30 PM ET):
Whole Earth Brands, Inc. - Class A (FREE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
4.82 | 4.83 | 4.83 | +0.02 | 551K | - | 0.2B |
FREE Dividend-Like Income Using Covered Calls
With FREE at 4.83, 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% | 0.14 | 0.0 |
5% | 0.24 | 0.1 |
10% | 0.48 | 0.1 |
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:
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | HIMS dividend | |
2. | QQQ dividend | 7. | TSLA dividend | 2. | RIVN dividend | |
3. | SPY dividend | 8. | SLV dividend | 3. | RDFN dividend | |
4. | HYG dividend | 9. | TLT dividend | 4. | PCT dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | UPST dividend |
Want more examples? FR Dividend | FREL Dividend