IGV Dividend Type Payments

iShares NORTH AMERICAN TECH-SOFTWARE ETF dividend

Although IGV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares NORTH AMERICAN TECH-SOFTWARE ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

iShares NORTH AMERICAN TECH-SOFTWARE ETF (IGV)
Bid Ask Last Change Volume P/E Market Cap
185.00 190.72 190.72 -0.68 337K - 19B

IGV Dividend-Like Income Using Covered Calls

With IGV at 190.72, 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% 5.72 1.6
5% 9.54 2.6
10% 19.07 5.2

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 IGV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 199.00 0.65 36 1.8 8.28 (4.3%)
Nov 16 205.00 1.45 92 1.6 14.28 (7.5%)
5% Yield On IGV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 196.00 1.45 36 4.0 5.28 (2.8%)
Nov 16 200.00 2.80 92 3.0 9.28 (4.9%)
10% Yield On IGV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 194.00 1.95 36 5.4 3.28 (1.7%)
Nov 16 194.00 5.40 92 5.9 3.28 (1.7%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
2.SPY dividend 7.GLD dividend   2.LB dividend
3.SPX dividend 8.FB dividend   3.AKRX dividend
4.QQQ dividend 9.IWM dividend   4.UVXY dividend
5.XLF dividend 10.GDX dividend   5.GPS dividend

Want more examples? IGT Dividend | IHDG Dividend