IEUR Dividend Type Payments
Although IEUR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core MSCI Europe 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 Core MSCI Europe ETF (IEUR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 53.00 | 56.48 | 55.42 | -0.41 | 562K | - | 5.3B |
IEUR Dividend-Like Income Using Covered Calls
With IEUR at 55.42, 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% | 1.66 | 0.5 |
| 5% | 2.77 | 0.8 |
| 10% | 5.54 | 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:
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| Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | TLT dividend | 1. | INFY dividend | |
| 2. | IWM dividend | 7. | FXI dividend | 2. | SNAP dividend | |
| 3. | SLV dividend | 8. | AAPL dividend | 3. | ASML dividend | |
| 4. | QQQ dividend | 9. | HYG dividend | 4. | FSLY dividend | |
| 5. | TSLA dividend | 10. | NVDA dividend | 5. | ELV dividend | |
Want more examples? IEP Dividend | IEV Dividend
