IJH Dividend Type Payments

iShares CORE S&P MID-CAP ETF dividend

Although IJH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares CORE S&P MID-CAP ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:25 PM ET):

iShares CORE S&P MID-CAP ETF (IJH)
Bid Ask Last Change Volume P/E Market Cap
187.23 187.25 187.23 +0.76 1.6M - 469B

IJH Dividend-Like Income Using Covered Calls

With IJH at 187.23, 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% 5.62 1.5
5% 9.36 2.6
10% 18.72 5.1

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 IJH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 192.00 0.10 5 2.0 4.75 (2.5%)
Nov 16 196.00 0.60 33 1.8 8.75 (4.7%)
5% Yield On IJH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 191.00 0.25 5 5.0 3.75 (2.0%)
Nov 16 194.00 0.95 33 2.9 6.75 (3.6%)
10% Yield On IJH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 190.00 0.50 5 10.0 2.75 (1.5%)
Nov 16 191.00 1.95 33 5.9 3.75 (2.0%)

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Want more examples? IIVI Dividend | IJJ Dividend