FXI Dividend Type Payments

iShares China Large-Cap ETF dividend

Although FXI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares China Large-Cap 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):

iShares China Large-Cap ETF (FXI)
Bid Ask Last Change Volume P/E Market Cap
30.29 30.31 30.31 0.00 23.1M - 5.8B

FXI Dividend-Like Income Using Covered Calls

With FXI at 30.31, 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% 0.91 0.2
5% 1.52 0.4
10% 3.03 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 FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 30.50 0.35 8 4.4 0.19 (0.6%)
Dec 13 30.50 0.05 15 0.3 0.19 (0.6%)
5% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 30.50 0.35 8 4.4 0.19 (0.6%)
Dec 13 32.00 0.19 15 1.3 1.69 (5.6%)
10% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 30.50 0.35 8 4.4 0.19 (0.6%)
Dec 13 32.00 0.19 15 1.3 1.69 (5.6%)

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Want more examples? FXH Dividend | FXL Dividend