EFG Dividend Type Payments

iShares MSCI EAFE GROWTH ETF dividend

Although EFG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI EAFE GROWTH 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 MSCI EAFE GROWTH ETF (EFG)
Bid Ask Last Change Volume P/E Market Cap
66.68 77.95 77.95 +0.51 150K - 35B

EFG Dividend-Like Income Using Covered Calls

With EFG at 77.95, 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% 2.34 0.6
5% 3.90 1.1
10% 7.80 2.1

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 EFG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 78.00 0.45 37 1.2 0.05 (0.1%)
Nov 16 79.00 0.60 93 0.6 1.05 (1.3%)
5% Yield On EFG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 78.00 0.45 37 1.2 0.05 (0.1%)
Nov 16 78.00 1.25 93 1.3 0.05 (0.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.AMAT dividend
2.EEM dividend 7.FB dividend   2.NVDA dividend
3.QQQ dividend 8.FXI dividend   3.UVXY dividend
4.BAC dividend 9.GLD dividend   4.DE dividend
5.SPX dividend 10.AABA dividend   5.AKRX dividend

Want more examples? EFFE Dividend | EFII Dividend