RE: RE: RE: RE: RE: RE: Dividends up across the bo
Yes, as far as I know the losses incurred of rebuying underlying equities (due to being called away) should be taken out of the dividend foremost. If this is the case, the dividend should be hit, how hard is yet to be seen. We haven't yet seen a bullish month, so its hard to say how low the div will go. If we're getting called away, I can live with the underlying equity rising - I believe that we participate in the majority of the upward run in NAV in this case (alot of this will depend on how efficient the etf manager is rebuying/balancing). The Gap in NAV between the equity being called away and the repurchase is the wild card and will create NAV erosion - *compared to a non-optioned equivalent. I would expect to participate in something like 70% upside in this case. I like to have a straight up etf or equivalent basket of stocks without calls to participate in a bull market situation. For the tsx, I don't expect huge upswings - (the diversity of the 30 stocks also somewhat helps dilute the sudden swings), so I think a healthy dividend is reasonably safe for HEX. As for HEE and HEP, I'm expecting some bigger swings in the div - pretty sure we're in the higher end - like I've previously mentioned we've been going downhill since inception, with inevitable bull commodity swings to come (I'm a gold and oil bull). I also don't think zwb or hef payouts will sway too much as canadian financials are generally fairly stable...
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20110604/GISTMAINCARRICKATL
This is a good article that includes extreme cases of broad indices, covered and non-covered comparisons.