IAI Dividend Type Payments

iShares DJ US BROKER-DE dividend

Although IAI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares DJ US BROKER-DE 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):

iShares DJ US BROKER-DE (IAI)
Bid Ask Last Change Volume P/E Market Cap
61.25 62.51 61.97 +0.33 75K - 4.4B

IAI Dividend-Like Income Using Covered Calls

With IAI at 61.97, here's a table showing how big the annual "dividend" (ie. 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% 1.86 0.5
5% 3.10 0.8
10% 6.20 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 IAI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 63.00 0.25 31 0.8 0.49 (0.8%)
Jan 18 65.00 0.60 94 0.6 2.49 (4.0%)
5% Yield On IAI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 63.00 1.10 94 1.2 0.49 (0.8%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
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2.SPX dividend 7.MU dividend   2.SKX dividend
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Want more examples? IAG Dividend | IAK Dividend