FXE Dividend Type Payments

Invesco CurrencyShares Euro Currency Trust dividend

Although FXE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco CurrencyShares Euro Currency Trust to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Invesco CurrencyShares Euro Currency Trust (FXE)
Bid Ask Last Change Volume P/E Market Cap
103.84 103.98 103.91 +0.28 109K 47 0.8B

FXE Dividend-Like Income Using Covered Calls

With FXE at 103.91, 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% 3.12 0.9
5% 5.20 1.4
10% 10.39 2.8

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 FXE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 104.00 0.15 8 1.9 0.02 (0.0%)
Sep 19 104.00 1.35 134 1.0 0.02 (0.0%)
5% Yield On FXE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 104.00 0.15 8 1.9 0.02 (0.0%)
Jun 20 104.00 1.15 43 2.7 0.02 (0.0%)

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Want more examples? FXD Dividend | FXF Dividend