MXEA Dividend Type Payments

Although MXEA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MSCI EAFE 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):

MSCI EAFE INDEX (MXEA)
Bid Ask Last Change Volume P/E Market Cap
1,910.82 1,910.82 1,910.82 +1,910.82 0K - 0.0B

MXEA Dividend-Like Income Using Covered Calls

With MXEA at 1,910.82, 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% 0.03 0.0
5% 0.05 0.0
10% 0.10 0.0

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 MXEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 1965.00 6.50 36 18.1 54.18 (2.8%)
Oct 19 1975.00 10.20 64 15.9 64.18 (3.4%)
5% Yield On MXEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 1955.00 9.60 36 26.7 44.18 (2.3%)
Oct 19 1955.00 17.70 64 27.7 44.18 (2.3%)
10% Yield On MXEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 1930.00 20.70 36 57.5 19.18 (1.0%)
Oct 19 1920.00 35.50 64 55.5 9.18 (0.5%)

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Want more examples? MX Dividend | MXI Dividend