EPP Dividend Type Payments
Although EPP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI Pacific Ex-Japan Index Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
iShares MSCI Pacific Ex-Japan Index Fund (EPP) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
39.00 | 45.53 | 45.53 | +0.39 | 203K | - | 0.0B |
EPP Dividend-Like Income Using Covered Calls
With EPP at 45.53, 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% | 1.37 | 0.4 |
5% | 2.28 | 0.6 |
10% | 4.55 | 1.2 |
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 EPP Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Mar 15 | 46.00 | 0.25 | 22 | 1.1 | 0.47 (1.0%) | |
Apr 18 | 47.00 | 0.30 | 56 | 0.5 | 1.47 (3.2%) |
5% Yield On EPP Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Mar 15 | 46.00 | 0.25 | 22 | 1.1 | 0.47 (1.0%) | |
Apr 18 | 46.00 | 0.65 | 56 | 1.2 | 0.47 (1.0%) |
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Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SPX dividend | 6. | EWZ dividend | 1. | AMRN dividend | |
2. | EEM dividend | 7. | GE dividend | 2. | FIT dividend | |
3. | SPY dividend | 8. | LLY dividend | 3. | ASND dividend | |
4. | QQQ dividend | 9. | BAC dividend | 4. | IMGN dividend | |
5. | FXI dividend | 10. | GLD dividend | 5. | OSTK dividend |
Want more examples? EPOL Dividend | EPR Dividend