EWA Dividend Type Payments

iShares MSCI Australia Index Fund dividend

Although EWA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI Australia 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 Australia Index Fund (EWA)
Bid Ask Last Change Volume P/E Market Cap
22.69 24.16 23.72 +0.14 2.4M - 1.4B

EWA Dividend-Like Income Using Covered Calls

With EWA at 23.72, here's a table showing how big the annual "dividend" (i.e. 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% 0.71 0.2
5% 1.19 0.3
10% 2.37 0.6

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 EWA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 25.00 0.20 85 0.2 0.84 (3.5%)
Oct 18 25.00 0.60 176 0.3 0.84 (3.5%)
5% Yield On EWA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 18 25.00 0.60 176 0.3 0.84 (3.5%)
Jan 17 25.00 0.95 267 0.4 0.84 (3.5%)

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Want more examples? EW Dividend | EWBC Dividend