QTEC Dividend Type Payments

Although QTEC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on FIRST TRUST NASDAQ-100-TECH INC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 9:55 AM ET):

FIRST TRUST NASDAQ-100-TECH INC (QTEC)
Bid Ask Last Change Volume P/E Market Cap
78.39 78.44 78.42 +0.50 14K - 25B

QTEC Dividend-Like Income Using Covered Calls

With QTEC at 78.42, 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% 2.35 0.6
5% 3.92 1.1
10% 7.84 2.1

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 QTEC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 79.00 0.75 37 2.0 0.56 (0.7%)
Oct 19 80.00 1.50 65 2.3 1.56 (2.0%)
5% Yield On QTEC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 79.00 0.75 37 2.0 0.56 (0.7%)
Oct 19 80.00 1.50 65 2.3 1.56 (2.0%)
10% Yield On QTEC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 80.00 1.50 65 2.3 1.56 (2.0%)

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