IPAC Dividend Type Payments
Although IPAC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core MSCI Pacific ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:30 AM ET):
| iShares Core MSCI Pacific ETF (IPAC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 63.11 | 63.17 | 63.14 | +0.29 | 12K | - | 1.0B |
IPAC Dividend-Like Income Using Covered Calls
With IPAC at 63.14, 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% | 1.89 | 0.5 |
| 5% | 3.16 | 0.9 |
| 10% | 6.31 | 1.7 |
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 IPAC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 63.00 | 0.75 | 100 | 0.6 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | BILL dividend | |
| 2. | TLT dividend | 7. | QQQ dividend | 2. | AFRM dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | NET dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | PINS dividend | |
| 5. | FXI dividend | 10. | GLD dividend | 5. | FTNT dividend | |
Want more examples? IP Dividend | IPAR Dividend
