REMX Dividend Type Payments
Although REMX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VanEck Rare Earth and Strategic Metals 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):
| VanEck Rare Earth and Strategic Metals ETF (REMX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 38.25 | 39.22 | 38.77 | -0.36 | 153K | - | 0.2B |
REMX Dividend-Like Income Using Covered Calls
With REMX at 38.77, 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% | 1.16 | 0.3 |
| 5% | 1.94 | 0.5 |
| 10% | 3.88 | 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 REMX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 40.00 | 0.80 | 71 | 1.1 | 0.78 (2.0%) | |
| Jul 18 | 40.00 | 0.45 | 43 | 1.0 | 0.78 (2.0%) | |
| 5% Yield On REMX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 40.00 | 0.80 | 71 | 1.1 | 0.78 (2.0%) | |
| Jul 18 | 40.00 | 0.45 | 43 | 1.0 | 0.78 (2.0%) | |
| 10% Yield On REMX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 40.00 | 0.80 | 71 | 1.1 | 0.78 (2.0%) | |
| Nov 21 | 40.00 | 2.00 | 169 | 1.2 | 0.78 (2.0%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | APP dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | APLD dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | SFIX dividend | |
| 4. | QQQ dividend | 9. | FXI dividend | 4. | ALT dividend | |
| 5. | GLD dividend | 10. | TLT dividend | 5. | SERV dividend | |
Want more examples? REM Dividend | REPL Dividend
