EFA Dividend Type Payments

iShares MSCI EAFE ETF dividend

Although EFA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI EAFE 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):

iShares MSCI EAFE ETF (EFA)
Bid Ask Last Change Volume P/E Market Cap
63.83 63.90 63.83 +0.05 22.5M - 0.0B

EFA Dividend-Like Income Using Covered Calls

With EFA at 63.83, 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% 1.91 0.5
5% 3.19 0.9
10% 6.38 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 EFA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 64.50 0.07 5 1.4 0.60 (0.9%)
Jun 28 65.00 0.07 12 0.6 1.10 (1.7%)
5% Yield On EFA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 64.50 0.07 5 1.4 0.60 (0.9%)
Jun 28 64.50 0.20 12 1.7 0.60 (0.9%)
10% Yield On EFA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 64.00 0.20 5 4.0 0.10 (0.2%)
Jun 28 64.00 0.41 12 3.4 0.10 (0.2%)

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Top 10 Open Interest For Jun 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.ITCI dividend
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3.EEM dividend 8.EFA dividend   3.BYND dividend
4.QQQ dividend 9.VXX dividend   4.KR dividend
5.EWZ dividend 10.AAPL dividend   5.ARQL dividend

Want more examples? EEX Dividend | EFAV Dividend