USFD Dividend Type Payments

Although USFD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on US Foods Holding Corp. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

US Foods Holding Corp. (USFD)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
71.53	81.13	77.11	+0.63	1.7M	32	17B

USFD Dividend-Like Income Using Covered Calls

With USFD at 77.11, here's a table showing how big the annual "dividend" (i.e. 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%	2.31	0.6
5%	3.86	1.1
10%	7.71	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 USFD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	82.50	0.80	122	0.7	1.37 (1.8%)
Jul 17	82.50	1.90	213	0.9	1.37 (1.8%)

5% Yield On USFD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 15	82.50	4.30	395	1.1	1.37 (1.8%)

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Want more examples? USDU Dividend | USFR Dividend