FTV Dividend

Although FTV has a dividend of 0.07 with an ex-dividend date of May 30, you can sell covered calls on Fortive Corp 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):

Fortive Corp (FTV)
Bid Ask Last Change Volume P/E Market Cap
69.14 83.50 80.52 -0.83 1.3M 10 27B

FTV Dividend-Like Income Using Covered Calls

With FTV at 80.52, 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% 2.42 0.7
5% 4.03 1.1
10% 8.05 2.2

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 FTV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 7 83.50 0.22 22 1.0 0.00 (0.0%)
Jun 14 84.00 0.27 29 0.9 0.50 (0.6%)
5% Yield On FTV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 14 83.50 0.37 29 1.3 0.00 (0.0%)
Jun 28 84.50 0.52 43 1.2 1.00 (1.2%)

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