AAXJ Dividend Type Payments

iShares MSCI ALL COUNTRY ASIA dividend

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

iShares MSCI ALL COUNTRY ASIA (AAXJ)
Bid Ask Last Change Volume P/E Market Cap
40.06 69.10 69.10 +0.65 426K - 43B

AAXJ Dividend-Like Income Using Covered Calls

With AAXJ at 69.10, 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% 2.07 0.6
5% 3.46 0.9
10% 6.91 1.9

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 AAXJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 72.00 0.35 37 0.9 2.90 (4.2%)
Dec 21 73.00 0.80 128 0.6 3.90 (5.6%)
5% Yield On AAXJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 71.00 0.60 37 1.6 1.90 (2.7%)
Dec 21 71.00 1.80 128 1.4 1.90 (2.7%)
10% Yield On AAXJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 70.00 0.95 37 2.6 0.90 (1.3%)
Dec 21 69.00 2.75 128 2.1 0.00 (0.0%)

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