FRTA Dividend Type Payments

Although FRTA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on FORTERRA 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):

FORTERRA (FRTA)
Bid Ask Last Change Volume P/E Market Cap
9.22 9.57 9.22 0.00 99K 31 0.6B

FRTA Dividend-Like Income Using Covered Calls

With FRTA at 9.22, 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% 0.28 0.1
5% 0.46 0.1
10% 0.92 0.3

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 FRTA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 10.00 0.20 33 0.6 0.43 (4.7%)
Oct 19 10.00 0.05 61 0.1 0.43 (4.7%)
5% Yield On FRTA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 10.00 0.20 33 0.6 0.43 (4.7%)
Dec 21 12.50 0.35 124 0.3 2.93 (31.8%)
10% Yield On FRTA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 10.00 0.20 33 0.6 0.43 (4.7%)
Dec 21 12.50 0.35 124 0.3 2.93 (31.8%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
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Want more examples? FRT Dividend | FSCT Dividend