FSMB Dividend Type Payments
Although FSMB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Short Duration Managed Municipal ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:40 PM ET):
| First Trust Short Duration Managed Municipal ETF (FSMB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 19.81 | 19.82 | 19.81 | +0.02 | 138K | - | 0.0B |
FSMB Dividend-Like Income Using Covered Calls
With FSMB at 19.81, 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% | 0.59 | 0.2 |
| 5% | 0.99 | 0.3 |
| 10% | 1.98 | 0.5 |
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. | AAOI dividend | |
| 2. | SPY dividend | 7. | TSLA dividend | 2. | NVAX dividend | |
| 3. | QQQ dividend | 8. | SLV dividend | 3. | MPW dividend | |
| 4. | HYG dividend | 9. | TLT dividend | 4. | RBLX dividend | |
| 5. | FXI dividend | 10. | NVDA dividend | 5. | BYND dividend | |
Want more examples? FSM Dividend | FSMD Dividend
