IEF Dividend Type Payments

iShares 7-10 Year Treasury Bond ETF dividend

Although IEF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 7-10 Year Treasury Bond ETF 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 7-10 Year Treasury Bond ETF (IEF)
Bid Ask Last Change Volume P/E Market Cap
102.56 102.58 102.56 +0.16 3.5M - 0.0B

IEF Dividend-Like Income Using Covered Calls

With IEF at 102.56, 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% 3.08 0.8
5% 5.13 1.4
10% 10.26 2.8

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 IEF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 102.50 0.20 8 1.5 0.00 (0.0%)
Jan 18 103.00 0.40 36 1.1 0.42 (0.4%)
5% Yield On IEF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 102.50 0.20 8 1.5 0.00 (0.0%)

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