FUTY Dividend Type Payments
Although FUTY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Fidelity MSCI Utilities Index ETF 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):
| Fidelity MSCI Utilities Index ETF (FUTY) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 49.45 | 53.00 | 52.95 | +0.75 | 213K | - | 0.0B |
FUTY Dividend-Like Income Using Covered Calls
With FUTY at 52.95, 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% | 1.59 | 0.4 |
| 5% | 2.65 | 0.7 |
| 10% | 5.30 | 1.5 |
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 FUTY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 55.00 | 0.60 | 127 | 0.5 | 2.00 (3.8%) | |
| Dec 19 | 54.00 | 1.35 | 218 | 0.6 | 1.00 (1.9%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | HIMS dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | VERA dividend | |
| 3. | SLV dividend | 8. | FXI dividend | 3. | SOUN dividend | |
| 4. | QQQ dividend | 9. | TSLA dividend | 4. | CEP dividend | |
| 5. | EEM dividend | 10. | XLF dividend | 5. | CELC dividend | |
Want more examples? FUTU Dividend | FV Dividend
