IAI Dividend Type Payments
Although IAI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares U.S. Broker-Dealers & Securities Exchanges ETF 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 U.S. Broker-Dealers & Securities Exchanges ETF (IAI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 107.75 | 112.29 | 110.35 | +0.48 | 31K | - | 0.3B |
IAI Dividend-Like Income Using Covered Calls
With IAI at 110.35, 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% | 3.31 | 0.9 |
| 5% | 5.52 | 1.5 |
| 10% | 11.04 | 3.0 |
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 | |
| May 17 | 112.00 | 1.30 | 31 | 3.3 | 0.00 (0.0%) | |
| Jul 19 | 115.00 | 1.70 | 94 | 1.8 | 2.71 (2.5%) | |
| 5% Yield On IAI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 112.00 | 1.30 | 31 | 3.3 | 0.00 (0.0%) | |
| Jul 19 | 115.00 | 1.70 | 94 | 1.8 | 2.71 (2.5%) | |
| 10% Yield On IAI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 112.00 | 1.30 | 31 | 3.3 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | TLT dividend | 1. | INFY dividend | |
| 2. | IWM dividend | 7. | FXI dividend | 2. | DJT dividend | |
| 3. | QQQ dividend | 8. | AAPL dividend | 3. | CVNA dividend | |
| 4. | TSLA dividend | 9. | HYG dividend | 4. | FSLY dividend | |
| 5. | SLV dividend | 10. | NVDA dividend | 5. | EYPT dividend | |
Want more examples? IAG Dividend | IAK Dividend
