EFV Dividend Type Payments
Although EFV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI EAFE Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 9:45 AM ET):
| iShares MSCI EAFE Value ETF (EFV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 46.52 | 46.53 | 46.53 | -0.24 | 95K | - | 0.0B |
EFV Dividend-Like Income Using Covered Calls
With EFV at 46.53, 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% | 1.40 | 0.4 |
| 5% | 2.33 | 0.6 |
| 10% | 4.65 | 1.3 |
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 EFV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 21 | 47.00 | 0.05 | 12 | 0.4 | 0.47 (1.0%) | |
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| Top 10 Open Interest For Dec 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | INVH dividend | 6. | SILJ dividend | 1. | dividend | |
| 2. | CB dividend | 7. | ISRG dividend | 2. | dividend | |
| 3. | SHO dividend | 8. | CCRN dividend | 3. | dividend | |
| 4. | IPI dividend | 9. | SJW dividend | 4. | dividend | |
| 5. | CBSH dividend | 10. | IUSV dividend | 5. | dividend | |
Want more examples? EFU Dividend | EFX Dividend
