DFE Dividend Type Payments

WISDOMTREE EUROPE SM-CAP DIVIDEND dividend

Although DFE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on WISDOMTREE EUROPE SM-CAP DIVIDEND to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

WISDOMTREE EUROPE SM-CAP DIVIDEND (DFE)
Bid Ask Last Change Volume P/E Market Cap
60.00 63.06 62.53 +0.38 61K - 11B

DFE Dividend-Like Income Using Covered Calls

With DFE at 62.53, 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% 1.88 0.5
5% 3.13 0.9
10% 6.25 1.7

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 DFE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 64.00 0.25 37 0.7 0.94 (1.5%)
Nov 16 64.00 0.80 93 0.9 0.94 (1.5%)
5% Yield On DFE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 63.00 0.65 37 1.6 0.00 (0.0%)
Nov 16 64.00 0.80 93 0.9 0.94 (1.5%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.AMAT dividend
2.SPY dividend 7.GLD dividend   2.NVDA dividend
3.SPX dividend 8.IWM dividend   3.UVXY dividend
4.QQQ dividend 9.FB dividend   4.DE dividend
5.XLF dividend 10.GDX dividend   5.AKRX dividend

Want more examples? DF Dividend | DFEN Dividend