IHF Dividend Type Payments

iShares US Health Care Providers ETF dividend

Although IHF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares US Health Care Providers 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 US Health Care Providers ETF (IHF)
Bid Ask Last Change Volume P/E Market Cap
175.00 185.41 183.34 +0.93 23K - 0.0B

IHF Dividend-Like Income Using Covered Calls

With IHF at 183.34, 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% 5.50 1.5
5% 9.17 2.5
10% 18.33 5.0

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
Apr 18 188.00 0.90 56 1.6 2.59 (1.4%)
May 17 189.00 1.45 85 1.7 3.59 (2.0%)
5% Yield On IHF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 186.00 1.45 56 2.6 0.59 (0.3%)
May 17 187.00 2.40 85 2.8 1.59 (0.9%)

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Want more examples? IHE Dividend | IHG Dividend