EWZ Dividend Type Payments

iShares MSCI BRAZIL ETF dividend

Although EWZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI BRAZIL 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 MSCI BRAZIL ETF (EWZ)
Bid Ask Last Change Volume P/E Market Cap
32.64 32.68 32.72 +0.68 36.0M - 73B

EWZ Dividend-Like Income Using Covered Calls

With EWZ at 32.72, 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% 0.98 0.3
5% 1.64 0.4
10% 3.27 0.9

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 EWZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 22 34.50 0.02 4 0.5 1.82 (5.6%)
Jun 29 36.00 0.03 11 0.3 3.32 (10.1%)
5% Yield On EWZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 22 34.50 0.02 4 0.5 1.82 (5.6%)
Jun 29 35.50 0.06 11 0.5 2.82 (8.6%)
10% Yield On EWZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 22 34.00 0.07 4 1.8 1.32 (4.0%)
Jun 29 35.00 0.10 11 0.9 2.32 (7.1%)

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Top 10 Open Interest For Jul 20 Expiration     Top 5 High Yield
1.SPY dividend 6.MU dividend   1.RENN dividend
2.EEM dividend 7.SPX dividend   2.AQXP dividend
3.XLF dividend 8.TWX dividend   3.MU dividend
4.T dividend 9.BAC dividend   4.DBX dividend
5.EWZ dividend 10.QQQ dividend   5.UVXY dividend

Want more examples? EWY Dividend | EXAS Dividend