DEM Dividend Type Payments
Although DEM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on WisdomTree Emerging Markets High Dividend Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:25 PM ET):
| WisdomTree Emerging Markets High Dividend Fund (DEM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 49.63 | 49.66 | 49.64 | +0.38 | 161K | - | 3.3B |
DEM Dividend-Like Income Using Covered Calls
With DEM at 49.64, 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% | 1.49 | 0.4 |
| 5% | 2.48 | 0.7 |
| 10% | 4.96 | 1.4 |
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 DEM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 51.00 | 0.30 | 26 | 1.2 | 1.34 (2.7%) | |
| Mar 20 | 50.00 | 0.75 | 54 | 1.4 | 0.34 (0.7%) | |
| 5% Yield On DEM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 51.00 | 0.30 | 26 | 1.2 | 1.34 (2.7%) | |
| Mar 20 | 50.00 | 0.75 | 54 | 1.4 | 0.34 (0.7%) | |
| 10% Yield On DEM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 50.00 | 0.75 | 54 | 1.4 | 0.34 (0.7%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KWEB dividend | 6. | CORZ dividend | 1. | OCUL dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | SLV dividend | |
| 3. | NVDA dividend | 8. | AAPL dividend | 3. | HYMC dividend | |
| 4. | IBIT dividend | 9. | HYG dividend | 4. | APLD dividend | |
| 5. | QQQ dividend | 10. | SPY dividend | 5. | QURE dividend | |
Want more examples? DELL Dividend | DENN Dividend
