EFAV Dividend Type Payments

iShares EDGE MSCI MIN VOL EAFE ETF dividend

Although EFAV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares EDGE MSCI MIN VOL EAFE ETF 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 EDGE MSCI MIN VOL EAFE ETF (EFAV)
Bid Ask Last Change Volume P/E Market Cap
69.33 73.03 73.03 +0.46 544K - 87B

EFAV Dividend-Like Income Using Covered Calls

With EFAV at 73.03, 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% 2.19 0.6
5% 3.65 1.0
10% 7.30 2.0

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 EFAV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 74.00 0.20 30 0.7 0.97 (1.3%)
Dec 21 74.00 0.70 93 0.8 0.97 (1.3%)
5% Yield On EFAV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 73.00 0.65 30 2.1 0.00 (0.0%)
Dec 21 73.00 1.25 93 1.3 0.00 (0.0%)
10% Yield On EFAV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 73.00 0.65 30 2.1 0.00 (0.0%)

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