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 Tue 4:16 PM ET):

CURRENCYSHARES SWEDISH KRONA T (FXS)
Bid Ask Last Change Volume P/E Market Cap
102.91 103.11 102.94 -0.45 2K - 1.4B

FXS Dividend-Like Income Using Covered Calls

With FXS at 102.94, 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% 3.09 0.8
5% 5.15 1.4
10% 10.29 2.8

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
Dec 21 105.00 1.45 130 1.1 1.89 (1.8%)
Mar 15 105.00 1.85 214 0.9 1.89 (1.8%)
5% Yield On FXS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 104.00 1.90 130 1.5 0.89 (0.9%)

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Want more examples? FXR Dividend | FXSG Dividend