AFK Dividend Type Payments
Although AFK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VanEck Africa Index ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:55 PM ET):
| VanEck Africa Index ETF (AFK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 23.45 | 23.60 | 23.48 | +0.05 | 20K | - | 0.1B |
AFK Dividend-Like Income Using Covered Calls
With AFK at 23.48, 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% | 0.70 | 0.2 |
| 5% | 1.17 | 0.3 |
| 10% | 2.35 | 0.6 |
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 Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | OPEN dividend | |
| 2. | SPY dividend | 7. | IBIT dividend | 2. | CBRL dividend | |
| 3. | PCG dividend | 8. | IWM dividend | 3. | QURE dividend | |
| 4. | TSLA dividend | 9. | SLV dividend | 4. | AIV dividend | |
| 5. | QQQ dividend | 10. | FXI dividend | 5. | CDTX dividend | |
Want more examples? AFG Dividend | AFL Dividend
