EPP Dividend Type Payments

iShares MSCI Pacific Ex-Japan Index Fund dividend

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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Want more examples? EPOL Dividend | EPR Dividend