MCHI Dividend Type Payments

iShares MSCI CHINA INDEX dividend

Although MCHI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI CHINA INDEX 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 MSCI CHINA INDEX (MCHI)
Bid Ask Last Change Volume P/E Market Cap
51.13 54.20 53.55 +0.77 3.8M - 35B

MCHI Dividend-Like Income Using Covered Calls

With MCHI at 53.55, 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% 1.61 0.4
5% 2.68 0.7
10% 5.36 1.5

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 MCHI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 58.00 0.25 29 0.9 3.80 (7.1%)
Feb 15 60.00 0.65 120 0.5 5.80 (10.8%)
5% Yield On MCHI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 58.00 0.25 29 0.9 3.80 (7.1%)
Feb 15 58.00 1.10 120 0.9 3.80 (7.1%)
10% Yield On MCHI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 56.00 0.60 29 2.1 1.80 (3.4%)
Feb 15 55.00 2.10 120 1.8 0.80 (1.5%)

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

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.SNAP dividend
2.EWZ dividend 7.FXI dividend   2.TWTR dividend
3.EEM dividend 8.VXX dividend   3.AMRN dividend
4.PBR dividend 9.IWM dividend   4.AMD dividend
5.QQQ dividend 10.BAC dividend   5.UVXY dividend

Want more examples? MCFT Dividend | MCHP Dividend