FXS Dividend Type Payments

CURRENCYSHARES SWEDISH KRONA T dividend

Although FXS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CURRENCYSHARES SWEDISH KRONA T to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

CURRENCYSHARES SWEDISH KRONA T (FXS)
Bid Ask Last Change Volume P/E Market Cap
103.77 104.00 104.24 -1.30 1K - 1.4B

FXS Dividend-Like Income Using Covered Calls

With FXS at 104.24, 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% 3.13 0.9
5% 5.21 1.4
10% 10.42 2.9

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 FXS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 106.00 1.55 149 1.0 2.00 (1.9%)
5% Yield On FXS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 104.00 2.45 149 1.6 0.00 (0.0%)

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