EWX Dividend Type Payments
Although EWX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Emerging Markets Small Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:45 PM ET):
SPDR S&P Emerging Markets Small Cap ETF (EWX) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
55.89 |
55.97 |
55.95 |
+0.15 |
23K |
- |
0.9B |
EWX Dividend-Like Income Using Covered Calls
With EWX at 55.95, 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% |
1.68 |
0.5 |
5% |
2.80 |
0.8 |
10% |
5.60 |
1.5 |
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 EWX Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
56.00 |
0.45 |
23 |
2.0 |
0.03 (0.1%) |
Jun 21 |
56.00 |
0.95 |
58 |
1.6 |
0.03 (0.1%) |
5% Yield On EWX Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
56.00 |
0.45 |
23 |
2.0 |
0.03 (0.1%) |
Jun 21 |
56.00 |
0.95 |
58 |
1.6 |
0.03 (0.1%) |
10% Yield On EWX Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
56.00 |
0.45 |
23 |
2.0 |
0.03 (0.1%) |
Jun 21 |
56.00 |
0.95 |
58 |
1.6 |
0.03 (0.1%) |
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