FSS Dividend Type Payments

Federal Signal Corp dividend

Although FSS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Federal Signal Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:15 AM ET):

Federal Signal Corp (FSS)
Bid Ask Last Change Volume P/E Market Cap
20.59 20.61 20.61 -0.20 54K - 0.0B

FSS Dividend-Like Income Using Covered Calls

With FSS at 20.61, 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% 0.62 0.2
5% 1.03 0.3
10% 2.06 0.6

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 FSS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 22.50 0.25 59 0.4 1.89 (9.2%)
May 17 25.00 0.35 150 0.2 4.39 (21.3%)
5% Yield On FSS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 22.50 0.25 59 0.4 1.89 (9.2%)
May 17 22.50 1.00 150 0.7 1.89 (9.2%)
10% Yield On FSS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 22.50 1.00 150 0.7 1.89 (9.2%)

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

 
Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1. dividend
2.EEM dividend 7.EWZ dividend   2. dividend
3.SPX dividend 8.BAC dividend   3. dividend
4.QQQ dividend 9.GE dividend   4. dividend
5.IWM dividend 10.HYG dividend   5. dividend

Want more examples? FSP Dividend | FSTA Dividend