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 10:50 AM ET):

iShares MSCI BRAZIL ETF (EWZ)
Bid Ask Last Change Volume P/E Market Cap
39.19 39.20 39.19 +0.98 6.4M - 66B

EWZ Dividend-Like Income Using Covered Calls

With EWZ at 39.19, 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% 1.18 0.3
5% 1.96 0.5
10% 3.92 1.1

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
Oct 19 41.00 0.02 4 0.5 1.80 (4.6%)
Oct 26 42.00 0.05 11 0.5 2.80 (7.1%)
5% Yield On EWZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 40.50 0.06 4 1.5 1.30 (3.3%)
Oct 26 41.50 0.10 11 0.9 2.30 (5.9%)
10% Yield On EWZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 40.50 0.06 4 1.5 1.30 (3.3%)
Oct 26 41.00 0.18 11 1.6 1.80 (4.6%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.NBEV dividend
2.SPX dividend 7.MU dividend   2.CRON dividend
3.EEM dividend 8.FXI dividend   3.TLRY dividend
4.QQQ dividend 9.AMD dividend   4.UVXY dividend
5.PBR dividend 10.XLF dividend   5.NFLX dividend

Want more examples? EWY Dividend | EXAS Dividend