EEM Dividend Type Payments
Although EEM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI Emerging Index Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| iShares MSCI Emerging Index Fund (EEM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 49.81 | 49.83 | 49.88 | -0.62 | 27.5M | - | 45B |
EEM Dividend-Like Income Using Covered Calls
With EEM at 49.88, 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% | 1.50 | 0.4 |
| 5% | 2.49 | 0.7 |
| 10% | 4.99 | 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 EEM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 50.00 | 0.57 | 23 | 2.5 | 0.17 (0.3%) | |
| Sep 12 | 50.00 | 0.74 | 30 | 2.5 | 0.17 (0.3%) | |
| 5% Yield On EEM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 50.00 | 0.57 | 23 | 2.5 | 0.17 (0.3%) | |
| Sep 12 | 50.00 | 0.74 | 30 | 2.5 | 0.17 (0.3%) | |
| 10% Yield On EEM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 50.00 | 0.57 | 23 | 2.5 | 0.17 (0.3%) | |
| Sep 12 | 50.00 | 0.74 | 30 | 2.5 | 0.17 (0.3%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | AMAT dividend | |
| 2. | PCG dividend | 7. | FXI dividend | 2. | RCAT dividend | |
| 3. | IWM dividend | 8. | QQQ dividend | 3. | QUBT dividend | |
| 4. | SPY dividend | 9. | IBIT dividend | 4. | TMC dividend | |
| 5. | EEM dividend | 10. | KWEB dividend | 5. | ASML dividend | |
Want more examples? EELV Dividend | EEMO Dividend
