IEZ Dividend Type Payments

iShares U.S. Oil Equipment & Services ETF dividend

Although IEZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares U.S. Oil Equipment & Services ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:25 PM ET):

iShares U.S. Oil Equipment & Services ETF (IEZ)
Bid Ask Last Change Volume P/E Market Cap
20.33 20.34 20.33 -1.00 74K - 0.2B

IEZ Dividend-Like Income Using Covered Calls

With IEZ at 20.33, 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% 0.61 0.2
5% 1.02 0.3
10% 2.03 0.6

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 IEZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 21.00 0.25 32 0.8 0.66 (3.2%)
Apr 17 21.00 0.30 123 0.2 0.66 (3.2%)
5% Yield On IEZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 21.00 0.25 32 0.8 0.66 (3.2%)
Jul 17 22.00 0.90 214 0.4 1.66 (8.2%)
10% Yield On IEZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 21.00 0.25 32 0.8 0.66 (3.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Dec 19 Expiration     Top 5 High Yield
1.NVDA dividend 6.TSLA dividend   1.HUT dividend
2.SPY dividend 7.SLV dividend   2.SGML dividend
3.IBIT dividend 8.NFLX dividend   3.NNE dividend
4.QQQ dividend 9.XLF dividend   4.SANA dividend
5.TLT dividend 10.AMZN dividend   5.ULCC dividend

Want more examples? IEX Dividend | IFF Dividend