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 Thu 10:35 AM ET):

iShares China Large-Cap ETF (FXI)
Bid Ask Last Change Volume P/E Market Cap
30.05 30.06 30.05 -0.38 8.3M - 5.8B

FXI Dividend-Like Income Using Covered Calls

With FXI at 30.05, 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% 0.90 0.2
5% 1.50 0.4
10% 3.01 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
Feb 7 30.50 0.79 37 2.1 0.44 (1.5%)
Jan 10 30.00 0.47 9 4.6 0.00 (0.0%)
5% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 30.50 0.79 37 2.1 0.44 (1.5%)
Jan 10 30.00 0.47 9 4.6 0.00 (0.0%)
10% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 30.50 0.79 37 2.1 0.44 (1.5%)
Jan 10 30.00 0.47 9 4.6 0.00 (0.0%)

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Want more examples? FXH Dividend | FXL Dividend