CROP Dividend Type Payments

IQ Global Agribusiness Sm-Cap ETF dividend

Although CROP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on IQ Global Agribusiness Sm-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:10 PM ET):

IQ Global Agribusiness Sm-Cap ETF (CROP)
Bid Ask Last Change Volume P/E Market Cap
31.91 31.93 31.96 +0.22 1K - 0.0B

CROP Dividend-Like Income Using Covered Calls

With CROP at 31.96, 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% 0.96 0.3
5% 1.60 0.4
10% 3.20 0.9

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 CROP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 32.00 0.30 24 1.3 0.07 (0.2%)
May 17 32.00 0.50 53 0.9 0.07 (0.2%)
5% Yield On CROP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 32.00 0.30 24 1.3 0.07 (0.2%)
May 17 32.00 0.50 53 0.9 0.07 (0.2%)
10% Yield On CROP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 32.00 0.30 24 1.3 0.07 (0.2%)
May 17 32.00 0.50 53 0.9 0.07 (0.2%)

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