IHF Dividend Type Payments
Although IHF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares DJ US HEALTHCAR 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 DJ US HEALTHCAR (IHF) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 192.21 | 194.00 | 193.22 | +0.58 | 67K | - | 5.9B |
IHF Dividend-Like Income Using Covered Calls
With IHF at 193.22, 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% | 5.80 | 1.6 |
| 5% | 9.66 | 2.6 |
| 10% | 19.32 | 5.3 |
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 IHF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 21 | 194.00 | 1.40 | 36 | 3.9 | 0.00 (0.0%) | |
| Nov 16 | 194.00 | 3.80 | 92 | 4.1 | 0.00 (0.0%) | |
| 5% Yield On IHF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 21 | 194.00 | 1.40 | 36 | 3.9 | 0.00 (0.0%) | |
| Nov 16 | 194.00 | 3.80 | 92 | 4.1 | 0.00 (0.0%) | |
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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? IHE Dividend | IHG Dividend
