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 11:35 AM ET):

Wisdomtree Europe Sm-Cap Dividend (DFE)
Bid Ask Last Change Volume P/E Market Cap
57.09 57.14 57.14 -0.35 4K - 0.0B

DFE Dividend-Like Income Using Covered Calls

With DFE at 57.14, 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% 1.71 0.5
5% 2.86 0.8
10% 5.71 1.6

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
Aug 16 58.00 0.25 30 0.8 0.86 (1.5%)
Nov 15 59.00 0.70 121 0.6 1.86 (3.3%)
5% Yield On DFE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 58.00 0.25 30 0.8 0.86 (1.5%)
Nov 15 58.00 1.15 121 1.0 0.86 (1.5%)
10% Yield On DFE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 57.00 0.75 30 2.0 0.00 (0.0%)

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