IEI Dividend Type Payments
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 Mon 10:20 AM ET):
| iShares 3-7 Year Treasury Bond ETF (IEI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 117.27 | 117.28 | 117.28 | -0.50 | 376K | - | 7.5B |
IEI Dividend-Like Income Using Covered Calls
With IEI at 117.28, 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% | 3.52 | 1.0 |
| 5% | 5.86 | 1.6 |
| 10% | 11.73 | 3.2 |
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 IEI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 117.00 | 0.35 | 5 | 1.4 | 0.00 (0.0%) | |
| Jul 18 | 117.00 | 1.10 | 68 | 1.2 | 0.00 (0.0%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | DOCS dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | ZI dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | LUNR dividend | |
| 4. | IWM dividend | 9. | GLD dividend | 4. | QUBT dividend | |
| 5. | QQQ dividend | 10. | KWEB dividend | 5. | ALT dividend | |
Want more examples? IEFA Dividend | IEMG Dividend
