EES Dividend Type Payments
Although EES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on WisdomTree U.S. SmallCap 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 U.S. SmallCap Fund (EES) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 50.04 | 56.09 | 53.56 | -0.16 | 19K | - | 0.7B |
EES Dividend-Like Income Using Covered Calls
With EES at 53.56, 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% | 1.61 | 0.4 |
| 5% | 2.68 | 0.7 |
| 10% | 5.36 | 1.5 |
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. | RGTI dividend | |
| 2. | SLV dividend | 7. | XLF dividend | 2. | IONQ dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | U dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | VIR dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | HCAT dividend | |
Want more examples? EEMX Dividend | EET Dividend
