FXB Dividend Type Payments

CURRENCYSHARES BRITISH POUND S dividend

Although FXB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CURRENCYSHARES BRITISH POUND S 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):

CURRENCYSHARES BRITISH POUND S (FXB)
Bid Ask Last Change Volume P/E Market Cap
126.72 126.82 126.72 +0.41 156K - 1.3B

FXB Dividend-Like Income Using Covered Calls

With FXB at 126.72, 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% 3.80 1.0
5% 6.34 1.7
10% 12.67 3.5

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 FXB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 129.00 0.35 29 1.2 2.18 (1.7%)
Dec 21 130.00 0.75 64 1.2 3.18 (2.5%)
5% Yield On FXB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 128.00 0.65 29 2.2 1.18 (0.9%)
Dec 21 128.00 1.50 64 2.3 1.18 (0.9%)
10% Yield On FXB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 127.00 1.05 29 3.6 0.18 (0.1%)

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Want more examples? FXA Dividend | FXC Dividend