IAU Dividend Type Payments
Although IAU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Gold Trust Shares of the iShares Gold Trust to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| iShares Gold Trust Shares of the iShares Gold Trust (IAU) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 45.15 | 45.16 | 45.14 | +0.14 | 7.9M | - | 12B |
IAU Dividend-Like Income Using Covered Calls
With IAU at 45.14, 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% | 1.35 | 0.4 |
| 5% | 2.26 | 0.6 |
| 10% | 4.51 | 1.2 |
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 IAU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 45.00 | 1.00 | 29 | 2.9 | 0.00 (0.0%) | |
| Jun 21 | 45.00 | 1.40 | 64 | 1.9 | 0.00 (0.0%) | |
| 5% Yield On IAU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 45.00 | 1.00 | 29 | 2.9 | 0.00 (0.0%) | |
| Jun 21 | 45.00 | 1.40 | 64 | 1.9 | 0.00 (0.0%) | |
| 10% Yield On IAU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 45.00 | 1.00 | 29 | 2.9 | 0.00 (0.0%) | |
| Jun 21 | 45.00 | 1.40 | 64 | 1.9 | 0.00 (0.0%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | HYG dividend | 6. | KWEB dividend | 1. | CVNA dividend | |
| 2. | IWM dividend | 7. | EEM dividend | 2. | FSLY dividend | |
| 3. | FXI dividend | 8. | SLV dividend | 3. | CLSK dividend | |
| 4. | QQQ dividend | 9. | TSLA dividend | 4. | MARA dividend | |
| 5. | SPY dividend | 10. | EWZ dividend | 5. | EYPT dividend | |
Want more examples? IAT Dividend | IBB Dividend
