IEZ Dividend Type Payments

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 Mon 4:16 PM ET):

iShares U.S. Oil Equipment & Services ETF (IEZ)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
16.83	17.86	17.19	+0.62	127K	-	0.1B

IEZ Dividend-Like Income Using Covered Calls

With IEZ at 17.19, 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%	0.52	0.1
5%	0.86	0.2
10%	1.72	0.5

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
Oct 17	18.00	1.00	159	0.6	0.14 (0.8%)
Jul 18	19.00	0.15	68	0.2	1.14 (6.6%)

5% Yield On IEZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	18.00	1.00	159	0.6	0.14 (0.8%)
Jun 20	18.00	0.20	40	0.5	0.14 (0.8%)

10% Yield On IEZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	18.00	1.00	159	0.6	0.14 (0.8%)
Jun 20	18.00	0.20	40	0.5	0.14 (0.8%)

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Want more examples? IEX Dividend | IFF Dividend