FXY Dividend Type Payments

CURRENCYSHARES JAPANESE YEN TRUST dividend

Although FXY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CURRENCYSHARES JAPANESE YEN TRUST 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 JAPANESE YEN TRUST (FXY)
Bid Ask Last Change Volume P/E Market Cap
86.52 86.59 86.49 +0.23 55K - 187B

FXY Dividend-Like Income Using Covered Calls

With FXY at 86.49, 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% 2.59 0.7
5% 4.32 1.2
10% 8.65 2.4

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 FXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 87.00 0.15 8 1.9 0.41 (0.5%)
Aug 31 87.50 0.15 15 1.0 0.91 (1.1%)
5% Yield On FXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 87.00 0.15 8 1.9 0.41 (0.5%)
Aug 31 87.00 0.25 15 1.7 0.41 (0.5%)
10% Yield On FXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 86.50 0.30 8 2.6 0.00 (0.0%)
Aug 31 86.50 0.45 15 2.4 0.00 (0.0%)

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