FXG Dividend Type Payments

Although FXG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust Cons. Staples AlphaDEX 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):

First Trust Cons. Staples AlphaDEX (FXG)
Bid Ask Last Change Volume P/E Market Cap
45.93 46.37 46.12 -0.21 24K - 0.0B

FXG Dividend-Like Income Using Covered Calls

With FXG at 46.12, 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% 1.38 0.4
5% 2.31 0.6
10% 4.61 1.3

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 FXG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 47.00 0.20 29 0.7 0.63 (1.4%)
Nov 15 47.00 0.85 120 0.7 0.63 (1.4%)
5% Yield On FXG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 47.00 0.20 29 0.7 0.63 (1.4%)
Nov 15 47.00 0.85 120 0.7 0.63 (1.4%)

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Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.FXI dividend 7.NIO dividend   2.HAL dividend
3.EEM dividend 8.BAC dividend   3.ITCI dividend
4.SPX dividend 9.GLD dividend   4.TWTR dividend
5.GDX dividend 10.EWZ dividend   5.CRWD dividend

Want more examples? FXF Dividend | FXH Dividend