DFAU Dividend Type Payments
Although DFAU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Dimensional US 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 US Core Equity Market ETF (DFAU) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 33.42 | 37.00 | 36.90 | +0.06 | 348K | - | 0.0B |
DFAU Dividend-Like Income Using Covered Calls
With DFAU at 36.90, 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% | 1.11 | 0.3 |
| 5% | 1.85 | 0.5 |
| 10% | 3.69 | 1.0 |
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:
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| Top 10 Open Interest For Jun 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | QQQ dividend | 6. | AMZN dividend | 1. | INSM dividend | |
| 2. | SPY dividend | 7. | AAPL dividend | 2. | AMC dividend | |
| 3. | IWM dividend | 8. | EEM dividend | 3. | ASTS dividend | |
| 4. | TSLA dividend | 9. | HYG dividend | 4. | GPCR dividend | |
| 5. | FXI dividend | 10. | SLV dividend | 5. | IOT dividend | |
Want more examples? DFAI Dividend | DFE Dividend
