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 Fri 4:16 PM ET):

iShares China Large-Cap ETF (FXI)
Bid Ask Last Change Volume P/E Market Cap
30.18 30.19 30.15 +0.20 31.2M - 5.7B

FXI Dividend-Like Income Using Covered Calls

With FXI at 30.15, 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% 0.90 0.2
5% 1.51 0.4
10% 3.02 0.8

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 FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 30.50 0.13 22 0.6 0.31 (1.0%)
Dec 13 30.50 0.10 29 0.3 0.31 (1.0%)
5% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 30.50 0.13 22 0.6 0.31 (1.0%)
Dec 20 31.00 0.66 36 1.8 0.81 (2.7%)
10% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 31.00 0.66 36 1.8 0.81 (2.7%)
Nov 22 30.50 0.18 8 2.3 0.31 (1.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Dec 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.QQQ dividend   1.SAVA dividend
2.SPY dividend 7.XLF dividend   2.RKLB dividend
3.EEM dividend 8.KWEB dividend   3.LUNR dividend
4.FXI dividend 9.TLT dividend   4.NMRA dividend
5.IWM dividend 10.KRE dividend   5.CRVS dividend

Want more examples? FXH Dividend | FXL Dividend