BRF Dividend Type Payments

VanEck Vectors Brazil Small-Cap ETF dividend

Although BRF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VanEck Vectors Brazil Small-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 9:55 AM ET):

VanEck Vectors Brazil Small-Cap ETF (BRF)
Bid Ask Last Change Volume P/E Market Cap
20.28 20.36 20.36 +0.28 8K - 0.0B

BRF Dividend-Like Income Using Covered Calls

With BRF at 20.36, 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% 0.61 0.2
5% 1.02 0.3
10% 2.04 0.6

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 BRF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 23.00 0.40 213 0.2 2.64 (13.0%)
5% Yield On BRF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 22.00 0.70 213 0.3 1.64 (8.1%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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5.IWM dividend 10.HYG dividend   5. dividend

Want more examples? BREW Dividend | BRFS Dividend