DEM Dividend Type Payments

Wisdomtree Emerging Markets Equities dividend

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

Wisdomtree Emerging Markets Equities (DEM)
Bid Ask Last Change Volume P/E Market Cap
38.10 42.74 40.74 -0.69 573K - 0.0B

DEM Dividend-Like Income Using Covered Calls

With DEM at 40.74, 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% 2.04 0.6
10% 4.07 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 DEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 43.00 0.20 43 0.5 0.26 (0.6%)
Mar 15 44.00 0.45 99 0.5 1.26 (3.1%)
5% Yield On DEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 43.00 0.70 99 0.7 0.26 (0.6%)
Jun 21 43.00 1.30 197 0.7 0.26 (0.6%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.IWM dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.USO dividend   4. dividend
5.EWZ dividend 10.VXX dividend   5. dividend

Want more examples? DEI Dividend | DEMG Dividend