EDIV Dividend Type Payments

Although EDIV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P EMERGING MARKETS DIVI to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:10 AM ET):

SPDR S&P EMERGING MARKETS DIVI (EDIV)
Bid Ask Last Change Volume P/E Market Cap
29.60 29.62 29.65 -0.83 5K - 4.2B

EDIV Dividend-Like Income Using Covered Calls

With EDIV at 29.65, 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% 0.89 0.2
5% 1.48 0.4
10% 2.97 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:

3% Yield On EDIV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 30.00 0.25 38 0.7 0.38 (1.3%)
Oct 19 30.00 0.35 66 0.5 0.38 (1.3%)
5% Yield On EDIV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 30.00 0.25 38 0.7 0.38 (1.3%)
Oct 19 30.00 0.35 66 0.5 0.38 (1.3%)

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Want more examples? EDIT Dividend | EDOG Dividend