EDIV Dividend Type Payments
Although EDIV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Emerging Markets Dividend ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:20 PM ET):
| SPDR S&P Emerging Markets Dividend ETF (EDIV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 36.37 | 36.39 | 36.39 | +0.07 | 21K | - | 0.5B |
EDIV Dividend-Like Income Using Covered Calls
With EDIV at 36.39, 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% | 1.09 | 0.3 |
| 5% | 1.82 | 0.5 |
| 10% | 3.64 | 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 Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | LUNR dividend | |
| 2. | SPY dividend | 7. | INTC dividend | 2. | HIMS dividend | |
| 3. | FXI dividend | 8. | QQQ dividend | 3. | ZETA dividend | |
| 4. | EEM dividend | 9. | SLV dividend | 4. | WOLF dividend | |
| 5. | KWEB dividend | 10. | TLT dividend | 5. | DNA dividend | |
Want more examples? EDIT Dividend | EDOC Dividend
