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 Thu 4:16 PM ET):

iShares DJ US BROKER-DE (IAI)
Bid Ask Last Change Volume P/E Market Cap
64.65 65.39 64.88 +0.58 22K - 4.4B

IAI Dividend-Like Income Using Covered Calls

With IAI at 64.88, 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% 1.95 0.5
5% 3.24 0.9
10% 6.49 1.8

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 IAI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 67.00 0.30 37 0.8 1.61 (2.5%)
Oct 19 68.00 0.40 65 0.6 2.61 (4.0%)
5% Yield On IAI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 66.00 0.60 37 1.6 0.61 (0.9%)
Oct 19 67.00 0.65 65 1.0 1.61 (2.5%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.AMAT dividend
2.SPY dividend 7.GLD dividend   2.NVDA dividend
3.SPX dividend 8.IWM dividend   3.UVXY dividend
4.QQQ dividend 9.FB dividend   4.DE dividend
5.XLF dividend 10.GDX dividend   5.AKRX dividend

Want more examples? IAG Dividend | IAK Dividend