CNYA Dividend Type Payments

Although CNYA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MSCI China A ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:45 AM ET):

iShares MSCI China A ETF (CNYA)
Bid Ask Last Change Volume P/E Market Cap
28.40 28.41 28.40 -0.05 87K - 0.0B

CNYA Dividend-Like Income Using Covered Calls

With CNYA at 28.40, 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% 0.85 0.2
5% 1.42 0.4
10% 2.84 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 CNYA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 29.00 1.25 207 0.6 0.59 (2.1%)
5% Yield On CNYA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 29.00 1.25 207 0.6 0.59 (2.1%)

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