ILF Dividend Type Payments

iShares S&P LATIN AMERICA 40 I dividend

Although ILF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P LATIN AMERICA 40 I to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

iShares S&P LATIN AMERICA 40 I (ILF)
Bid Ask Last Change Volume P/E Market Cap
30.39 30.61 30.48 -0.08 1.3M - 12B

ILF Dividend-Like Income Using Covered Calls

With ILF at 30.48, 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% 0.91 0.3
5% 1.52 0.4
10% 3.05 0.8

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 ILF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 34.00 0.10 36 0.3 3.39 (11.1%)
Dec 21 36.00 0.45 127 0.4 5.39 (17.7%)
5% Yield On ILF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 33.00 0.20 36 0.6 2.39 (7.8%)
Dec 21 35.00 0.65 127 0.5 4.39 (14.4%)
10% Yield On ILF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 32.00 0.45 36 1.3 1.39 (4.6%)
Dec 21 33.00 1.10 127 0.9 2.39 (7.8%)

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Want more examples? ILB Dividend | ILG Dividend