EWW Dividend Type Payments

iShares Inc iShares MSCI Mexico ETF dividend

Although EWW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Inc iShares MSCI Mexico ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

iShares Inc iShares MSCI Mexico ETF (EWW)
Bid Ask Last Change Volume P/E Market Cap
66.50 67.60 67.10 +0.77 1.6M - 1.1B

EWW Dividend-Like Income Using Covered Calls

With EWW at 67.10, 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% 2.01 0.6
5% 3.36 0.9
10% 6.71 1.8

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 EWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 68.00 1.25 53 2.4 0.40 (0.6%)
Nov 21 68.00 0.85 25 3.4 0.40 (0.6%)
5% Yield On EWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 68.00 1.25 53 2.4 0.40 (0.6%)
Nov 21 68.00 0.85 25 3.4 0.40 (0.6%)
10% Yield On EWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 68.00 1.25 53 2.4 0.40 (0.6%)
Nov 21 68.00 0.85 25 3.4 0.40 (0.6%)

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