ECNS Dividend Type Payments

iShares MSCI CHINA SM-CAP I dividend

Although ECNS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI CHINA SM-CAP I 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):

iShares MSCI CHINA SM-CAP I (ECNS)
Bid Ask Last Change Volume P/E Market Cap
40.00 40.72 40.72 -1.23 2K - 0.2B

ECNS Dividend-Like Income Using Covered Calls

With ECNS at 40.72, 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 ECNS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 41.00 0.40 30 1.3 0.28 (0.7%)
Dec 21 41.00 0.65 65 1.0 0.28 (0.7%)
5% Yield On ECNS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 41.00 0.40 30 1.3 0.28 (0.7%)
Dec 21 41.00 0.65 65 1.0 0.28 (0.7%)
10% Yield On ECNS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 41.00 0.40 30 1.3 0.28 (0.7%)

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Want more examples? ECL Dividend | ECO Dividend