IGV Dividend Type Payments

iShares Expanded Tech-Software Sector ETF dividend

Although IGV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Expanded Tech-Software Sector 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 Expanded Tech-Software Sector ETF (IGV)
Bid Ask Last Change Volume P/E Market Cap
207.15 212.70 208.45 +0.12 500K - 0.0B

IGV Dividend-Like Income Using Covered Calls

With IGV at 208.45, 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% 6.25 1.7
5% 10.42 2.9
10% 20.85 5.7

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
Apr 18 220.00 0.60 25 2.4 7.30 (3.5%)
May 17 220.00 1.95 54 3.6 7.30 (3.5%)
5% Yield On IGV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 215.00 1.70 25 6.8 2.30 (1.1%)
May 17 220.00 1.95 54 3.6 7.30 (3.5%)
10% Yield On IGV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 215.00 1.70 25 6.8 2.30 (1.1%)
May 17 215.00 3.60 54 6.7 2.30 (1.1%)

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Want more examples? IGT Dividend | IGZ Dividend