FXI Dividend Type Payments

iShares China Large-Cap ETF dividend

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

iShares China Large-Cap ETF (FXI)
Bid Ask Last Change Volume P/E Market Cap
39.10 39.18 39.09 +0.27 25.5M - 7.4B

FXI Dividend-Like Income Using Covered Calls

With FXI at 39.09, 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% 1.17 0.3
5% 1.95 0.5
10% 3.91 1.1

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 FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 12 39.50 0.08 3 2.7 0.32 (0.8%)
Dec 19 39.00 0.22 10 0.4 0.00 (0.0%)
5% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 12 39.50 0.08 3 2.7 0.32 (0.8%)
Dec 19 39.50 0.17 10 1.7 0.32 (0.8%)
10% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 12 39.50 0.08 3 2.7 0.32 (0.8%)
Dec 19 39.50 0.17 10 1.7 0.32 (0.8%)

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Top 10 Open Interest For Dec 19 Expiration     Top 5 High Yield
1.NVDA dividend 6.EEM dividend   1.TE dividend
2.SPY dividend 7.SLV dividend   2.RZLT dividend
3.QQQ dividend 8.TLT dividend   3.ORCL dividend
4.IWM dividend 9.FXI dividend   4.LULU dividend
5.IBIT dividend 10.NFLX dividend   5.NKTR dividend

Want more examples? FXH Dividend | FXL Dividend