FWRD Dividend Type Payments

FORWARD AIR dividend

Although FWRD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on FORWARD AIR 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):

FORWARD AIR (FWRD)
Bid Ask Last Change Volume P/E Market Cap
63.55 63.55 63.55 +0.43 191K 20 1.9B

FWRD Dividend-Like Income Using Covered Calls

With FWRD at 63.55, 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% 1.91 0.5
5% 3.18 0.9
10% 6.36 1.7

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 FWRD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 65.00 0.05 8 0.6 1.45 (2.3%)
Nov 16 70.00 0.25 36 0.7 6.45 (10.1%)
5% Yield On FWRD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 65.00 1.60 36 4.4 1.45 (2.3%)
Dec 21 65.00 2.10 71 3.0 1.45 (2.3%)
10% Yield On FWRD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 65.00 1.60 36 4.4 1.45 (2.3%)
Dec 21 65.00 2.10 71 3.0 1.45 (2.3%)

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