XPO Dividend Type Payments

XPO Logistics, Inc dividend

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

XPO Logistics, Inc (XPO)
Bid Ask Last Change Volume P/E Market Cap
54.00 59.00 56.98 -1.31 1.0M 21 5.4B

XPO Dividend-Like Income Using Covered Calls

With XPO at 56.98, 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% 1.71 0.5
5% 2.85 0.8
10% 5.70 1.6

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 XPO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 67.50 0.25 33 0.8 8.50 (14.9%)
Aug 16 75.00 0.45 89 0.5 16.00 (28.1%)
5% Yield On XPO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 65.00 0.50 33 1.5 6.00 (10.5%)
Aug 16 70.00 0.90 89 1.0 11.00 (19.3%)
10% Yield On XPO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 62.50 0.85 33 2.6 3.50 (6.1%)
Aug 16 67.50 1.40 89 1.6 8.50 (14.9%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Jun 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.BCRX dividend
2.SPX dividend 7.BAC dividend   2.LB dividend
3.EEM dividend 8.AAPL dividend   3.CARA dividend
4.QQQ dividend 9.XLF dividend   4.NIO dividend
5.EWZ dividend 10.VXX dividend   5.AMD dividend

Want more examples? XPH Dividend | XPP Dividend