KSA Dividend Type Payments

iShares MSCI SAUDI ARABIA ETF dividend

Although KSA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI SAUDI ARABIA 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 MSCI SAUDI ARABIA ETF (KSA)
Bid Ask Last Change Volume P/E Market Cap
26.25 29.70 28.93 -0.20 270K - 2.8B

KSA Dividend-Like Income Using Covered Calls

With KSA at 28.93, 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% 0.87 0.2
5% 1.45 0.4
10% 2.89 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 KSA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 30.00 0.15 39 0.4 0.30 (1.0%)
Dec 21 31.00 0.45 130 0.3 1.30 (4.5%)
5% Yield On KSA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 30.00 0.75 130 0.6 0.30 (1.0%)
Mar 15 30.00 1.05 214 0.5 0.30 (1.0%)

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

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.FB dividend   4.CGC dividend
5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? KS Dividend | KSS Dividend