HEWJ Dividend Type Payments

Although HEWJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares CURRENCY HEDGED MSCI J to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:10 PM ET):

iShares CURRENCY HEDGED MSCI J (HEWJ)
Bid Ask Last Change Volume P/E Market Cap
31.92 31.93 31.91 +0.11 490K - 10B

HEWJ Dividend-Like Income Using Covered Calls

With HEWJ at 31.91, 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% 0.96 0.3
5% 1.60 0.4
10% 3.19 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 HEWJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 32.00 0.45 120 0.4 0.07 (0.2%)
May 17 32.00 0.85 211 0.4 0.07 (0.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.UVXY dividend
2.EWZ dividend 7.FXI dividend   2.AMD dividend
3.EEM dividend 8.VXX dividend   3.SNAP dividend
4.PBR dividend 9.IWM dividend   4.TWTR dividend
5.QQQ dividend 10.BAC dividend   5.CRON dividend

Want more examples? HEWI Dividend | HEWL Dividend