DXJ Dividend Type Payments

WisdomTree Japan Hedged Equity Fund dividend

Although DXJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on WisdomTree Japan Hedged Equity Fund 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):

WisdomTree Japan Hedged Equity Fund (DXJ)
Bid Ask Last Change Volume P/E Market Cap
106.90 111.00 108.00 +0.05 407K - 4.7B

DXJ Dividend-Like Income Using Covered Calls

With DXJ at 108.00, 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% 3.24 0.9
5% 5.40 1.5
10% 10.80 3.0

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:

3% Yield On DXJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 111.00 3.40 213 1.6 0.00 (0.0%)
May 16 111.00 1.95 122 1.6 0.00 (0.0%)
5% Yield On DXJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 111.00 3.40 213 1.6 0.00 (0.0%)
May 16 111.00 1.95 122 1.6 0.00 (0.0%)
10% Yield On DXJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 21 111.00 1.20 38 3.2 0.00 (0.0%)

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Want more examples? DXD Dividend | DXJS Dividend