IEI Dividend Type Payments

iShares 3-7 Year Treasury Bond ETF dividend

Although IEI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 3-7 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 3-7 Year Treasury Bond ETF (IEI)
Bid Ask Last Change Volume P/E Market Cap
123.38 123.42 123.42 +0.03 375K - 6.9B

IEI Dividend-Like Income Using Covered Calls

With IEI at 123.42, 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% 3.70 1.0
5% 6.17 1.7
10% 12.34 3.4

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:

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Top 10 Open Interest For Jun 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.BCRX dividend
2.SPX dividend 7.BAC dividend   2.CARA dividend
3.EEM dividend 8.AAPL dividend   3.NIO dividend
4.QQQ dividend 9.XLF dividend   4.LB dividend
5.EWZ dividend 10.VXX dividend   5.FCAU dividend

Want more examples? IEFA Dividend | IEMG Dividend