IEI Dividend Type Payments

iShares BARCLAYS 3-7-YEAR TREASURY dividend

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 Tue 4:16 PM ET):

iShares BARCLAYS 3-7-YEAR TREASURY (IEI)
Bid Ask Last Change Volume P/E Market Cap
120.06 120.10 120.09 -0.11 333K - 76B

IEI Dividend-Like Income Using Covered Calls

With IEI at 120.09, 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% 3.60 1.0
5% 6.00 1.6
10% 12.01 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 Sep 21 Expiration     Top 5 High Yield
1.SPY dividend 6.GE dividend   1.MOMO dividend
2.EEM dividend 7.GLD dividend   2.AKRX dividend
3.SPX dividend 8.FB dividend   3.UVXY dividend
4.QQQ dividend 9.IWM dividend   4.BABA dividend
5.XLF dividend 10.GDX dividend   5.GERN dividend

Want more examples? IEFA Dividend | IEK Dividend