LEMB Dividend Type Payments

iShares J.P. Morgan EM Local Currency Bond dividend

Although LEMB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares J.P. Morgan EM Local Currency Bond 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 J.P. Morgan EM Local Currency Bond (LEMB)
Bid Ask Last Change Volume P/E Market Cap
38.37 42.96 42.96 -0.42 62K - 0.0B

LEMB Dividend-Like Income Using Covered Calls

With LEMB at 42.96, 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% 1.29 0.4
5% 2.15 0.6
10% 4.30 1.2

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 LEMB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 43.00 0.25 36 0.7 0.04 (0.1%)
Sep 20 43.00 0.75 127 0.6 0.04 (0.1%)
5% Yield On LEMB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 43.00 0.25 36 0.7 0.04 (0.1%)
Sep 20 43.00 0.75 127 0.6 0.04 (0.1%)

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

 
Top 10 Open Interest For Jun 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.BCRX dividend
2.SPX dividend 7.BAC dividend   2.CARA dividend
3.EEM dividend 8.AAPL dividend   3.NIO dividend
4.QQQ dividend 9.XLF dividend   4.LB dividend
5.EWZ dividend 10.VXX dividend   5.FCAU dividend

Want more examples? LEJU Dividend | LEN Dividend