INDY Dividend Type Payments

iShares India 50 ETF dividend

Although INDY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares India 50 ETF 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 India 50 ETF (INDY)
Bid Ask Last Change Volume P/E Market Cap
34.16 35.00 34.22 -0.25 54K - 0.8B

INDY Dividend-Like Income Using Covered Calls

With INDY at 34.22, 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% 1.03 0.3
5% 1.71 0.5
10% 3.42 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 INDY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 36.00 0.10 29 0.3 1.00 (2.9%)
Jun 21 36.00 0.50 127 0.4 1.00 (2.9%)
5% Yield On INDY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 35.00 0.90 127 0.7 0.00 (0.0%)
Sep 20 35.00 1.35 218 0.6 0.00 (0.0%)

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5.QQQ dividend 10.JD dividend   5.VKTX dividend

Want more examples? INDS Dividend | INFI Dividend