FTC Dividend Type Payments

Although FTC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Lg-Cap Growth AlphaDEX Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

First Trust Lg-Cap Growth AlphaDEX Fund (FTC)
Bid Ask Last Change Volume P/E Market Cap
61.81 65.78 65.78 -1.32 73K - 0.9B

FTC Dividend-Like Income Using Covered Calls

With FTC at 65.78, 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% 1.97 0.5
5% 3.29 0.9
10% 6.58 1.8

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 FTC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 66.00 0.45 28 1.6 0.22 (0.3%)
May 17 66.00 0.80 57 1.4 0.22 (0.3%)
5% Yield On FTC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 66.00 0.45 28 1.6 0.22 (0.3%)
May 17 66.00 0.80 57 1.4 0.22 (0.3%)

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Want more examples? FTAI Dividend | FTD Dividend