IHF Dividend Type Payments
Although IHF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares U.S. 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 U.S. Health Care Providers ETF (IHF) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 49.76 | 54.70 | 51.92 | -0.18 | 57K | - | 0.9B |
IHF Dividend-Like Income Using Covered Calls
With IHF at 51.92, 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% | 1.56 | 0.4 |
| 5% | 2.60 | 0.7 |
| 10% | 5.19 | 1.4 |
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 | |
| Nov 15 | 55.00 | 0.90 | 204 | 0.4 | 0.30 (0.6%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | WOLF dividend | |
| 2. | HYG dividend | 7. | KWEB dividend | 2. | ENVX dividend | |
| 3. | QQQ dividend | 8. | SLV dividend | 3. | FSLY dividend | |
| 4. | SPY dividend | 9. | TSLA dividend | 4. | NOVA dividend | |
| 5. | FXI dividend | 10. | NVDA dividend | 5. | COIN dividend | |
Want more examples? IHE Dividend | IHI Dividend
