FTCS Dividend Type Payments
Although FTCS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Capital Strength ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:35 AM ET):
| First Trust Capital Strength ETF (FTCS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 91.04 | 91.06 | 91.06 | +0.51 | 259K | - | 0.2B |
FTCS Dividend-Like Income Using Covered Calls
With FTCS at 91.06, 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% | 2.73 | 0.7 |
| 5% | 4.55 | 1.2 |
| 10% | 9.11 | 2.5 |
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:
| 3% Yield On FTCS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 91.00 | 1.85 | 190 | 0.9 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | IREN dividend | |
| 2. | NVDA dividend | 7. | ASST dividend | 2. | MSTR dividend | |
| 3. | KVUE dividend | 8. | INTC dividend | 3. | SOUN dividend | |
| 4. | SLV dividend | 9. | SPY dividend | 4. | WEN dividend | |
| 5. | GLD dividend | 10. | HYG dividend | 5. | UAMY dividend | |
Want more examples? FTC Dividend | FTDR Dividend
