RAAX Dividend Type Payments
Although RAAX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VanEck Real Assets ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:00 AM ET):
| VanEck Real Assets ETF (RAAX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 37.12 | 37.25 | 37.16 | -0.13 | 30K | - | 0.2B |
RAAX Dividend-Like Income Using Covered Calls
With RAAX at 37.16, 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% | 1.11 | 0.3 |
| 5% | 1.86 | 0.5 |
| 10% | 3.72 | 1.0 |
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:
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | CRVS dividend | |
| 2. | IBIT dividend | 7. | AAPL dividend | 2. | TMQ dividend | |
| 3. | TLT dividend | 8. | NFLX dividend | 3. | ZVRA dividend | |
| 4. | INTC dividend | 9. | QQQ dividend | 4. | CSIQ dividend | |
| 5. | SPY dividend | 10. | GLD dividend | 5. | WYFI dividend | |
Want more examples? R Dividend | RACE Dividend
