KWEB Dividend Type Payments

Although KWEB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on KRANESHARES CSI CHINA INTERNET 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):

KRANESHARES CSI CHINA INTERNET (KWEB)
Bid Ask Last Change Volume P/E Market Cap
49.30 52.50 49.56 -2.38 1.2M - 14B

KWEB Dividend-Like Income Using Covered Calls

With KWEB at 49.56, 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% 1.49 0.4
5% 2.48 0.7
10% 4.96 1.4

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 KWEB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 54.00 0.25 39 0.6 1.50 (3.0%)
Nov 16 55.00 0.75 95 0.8 2.50 (5.0%)
5% Yield On KWEB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.75 95 0.8 2.50 (5.0%)
Feb 15 55.00 1.45 186 0.8 2.50 (5.0%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
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5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? KW Dividend | KWR Dividend