PICK Dividend Type Payments
Although PICK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI Global Metals & Mining Producers ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:30 PM ET):
| iShares MSCI Global Metals & Mining Producers ETF (PICK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 45.21 |
45.26 |
45.22 |
+0.61 |
111K |
- |
0.4B |
PICK Dividend-Like Income Using Covered Calls
With PICK at 45.22, here's a table showing how big the annual "dividend" (i.e. 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% |
1.36 |
0.4 |
| 5% |
2.26 |
0.6 |
| 10% |
4.52 |
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 PICK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
46.00 |
0.30 |
45 |
0.7 |
0.74 (1.6%) |
| Nov 21 |
46.00 |
0.45 |
17 |
2.6 |
0.74 (1.6%) |
| 5% Yield On PICK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
46.00 |
0.30 |
45 |
0.7 |
0.74 (1.6%) |
| Nov 21 |
46.00 |
0.45 |
17 |
2.6 |
0.74 (1.6%) |
| 10% Yield On PICK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
46.00 |
0.45 |
17 |
2.6 |
0.74 (1.6%) |
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