HEFA Dividend Type Payments
Although HEFA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Currency Hedged MSCI EAFE ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:00 AM ET):
| iShares Currency Hedged MSCI EAFE ETF (HEFA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 35.04 | 35.05 | 35.05 | +0.28 | 124K | - | 2.7B |
HEFA Dividend-Like Income Using Covered Calls
With HEFA at 35.05, 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% | 1.05 | 0.3 |
| 5% | 1.75 | 0.5 |
| 10% | 3.51 | 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 Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | IWM dividend | 1. | HUMA dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | WULF dividend | |
| 3. | TSLA dividend | 8. | EEM dividend | 3. | OSCR dividend | |
| 4. | SPY dividend | 9. | EWZ dividend | 4. | AMAT dividend | |
| 5. | SLV dividend | 10. | SMCI dividend | 5. | NMRA dividend | |
Want more examples? HEES Dividend | HEI Dividend
