DAX Dividend Type Payments

Although DAX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X DAX Germany ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Global X DAX Germany ETF (DAX)
Bid Ask Last Change Volume P/E Market Cap
45.15 45.45 45.33 +0.55 144K - 0.1B

DAX Dividend-Like Income Using Covered Calls

With DAX at 45.33, 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% 2.27 0.6
10% 4.53 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 DAX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 47.00 1.30 193 0.7 1.55 (3.4%)
5% Yield On DAX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 47.00 1.30 193 0.7 1.55 (3.4%)

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Want more examples? DAVE Dividend | DAY Dividend