IEI Dividend Type Payments
Although IEI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares BARCLAYS 3-7-YEAR TREASURY to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| iShares BARCLAYS 3-7-YEAR TREASURY (IEI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 118.64 | 118.63 | 118.63 | +0.03 | 242K | - | 76B |
IEI Dividend-Like Income Using Covered Calls
With IEI at 118.63, 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% | 3.56 | 1.0 |
| 5% | 5.93 | 1.6 |
| 10% | 11.86 | 3.3 |
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 Oct 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | MU dividend | 1. | CRON dividend | |
| 2. | SPX dividend | 7. | FXI dividend | 2. | UVXY dividend | |
| 3. | EEM dividend | 8. | BAC dividend | 3. | NIO dividend | |
| 4. | QQQ dividend | 9. | AMD dividend | 4. | NFLX dividend | |
| 5. | PBR dividend | 10. | XLF dividend | 5. | AMRN dividend | |
Want more examples? IEFA Dividend | IEK Dividend
