DFAI Dividend Type Payments
Although DFAI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Dimensional International Core Equity Market ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
Dimensional International Core Equity Market ETF (DFAI) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
28.90 | 45.55 | 30.37 | -0.01 | 1.1M | - | 0.0B |
DFAI Dividend-Like Income Using Covered Calls
With DFAI at 30.37, here's a table showing how big the annual "dividend" (i.e. 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% | 0.91 | 0.2 |
5% | 1.52 | 0.4 |
10% | 3.04 | 0.8 |
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:
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | QQQ dividend | 6. | TSLA dividend | 1. | OKLO dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | IEP dividend | |
3. | SPY dividend | 8. | NVDA dividend | 3. | MNDY dividend | |
4. | HYG dividend | 9. | SLV dividend | 4. | KODK dividend | |
5. | FXI dividend | 10. | AMZN dividend | 5. | BYON dividend |
Want more examples? DFAE Dividend | DFAU Dividend