EDIV Dividend Type Payments
Although EDIV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Emerging Markets Dividend ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:45 PM ET):
| SPDR S&P Emerging Markets Dividend ETF (EDIV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 34.21 | 34.26 | 34.21 | -0.68 | 78K | - | 0.4B |
EDIV Dividend-Like Income Using Covered Calls
With EDIV at 34.21, 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% | 1.03 | 0.3 |
| 5% | 1.71 | 0.5 |
| 10% | 3.42 | 0.9 |
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 Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | HUM dividend | |
| 2. | SLV dividend | 7. | XLF dividend | 2. | SWTX dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | RCAT dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | ENFN dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | DNA dividend | |
Want more examples? EDIT Dividend | EDOC Dividend
