BKF Dividend Type Payments

iShares MSCI BRIC INDEX dividend

Although BKF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI BRIC INDEX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:05 PM ET):

iShares MSCI BRIC INDEX (BKF)
Bid Ask Last Change Volume P/E Market Cap
40.57 40.63 40.53 +0.13 3K - 2.6B

BKF Dividend-Like Income Using Covered Calls

With BKF at 40.53, 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% 1.22 0.3
5% 2.03 0.6
10% 4.05 1.1

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 BKF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 42.00 0.20 33 0.6 1.37 (3.4%)
Oct 19 43.00 0.25 61 0.4 2.37 (5.8%)
5% Yield On BKF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 42.00 0.20 33 0.6 1.37 (3.4%)
Oct 19 42.00 0.50 61 0.8 1.37 (3.4%)
10% Yield On BKF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 41.00 0.60 33 1.8 0.37 (0.9%)
Oct 19 41.00 0.90 61 1.5 0.37 (0.9%)

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Want more examples? BKEP Dividend | BKH Dividend