IJJ Dividend Type Payments

iShares S&P MID-CAP 400 VALUE I dividend

Although IJJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P MID-CAP 400 VALUE I to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:50 PM ET):

iShares S&P MID-CAP 400 VALUE I (IJJ)
Bid Ask Last Change Volume P/E Market Cap
165.08 165.17 165.17 -1.43 24K - 59B

IJJ Dividend-Like Income Using Covered Calls

With IJJ at 165.17, 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% 4.96 1.4
5% 8.26 2.3
10% 16.52 4.5

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 IJJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 167.00 0.85 38 2.2 1.83 (1.1%)
Dec 21 169.00 2.15 129 1.7 3.83 (2.3%)
5% Yield On IJJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 166.00 1.35 38 3.6 0.83 (0.5%)
Dec 21 167.00 3.10 129 2.4 1.83 (1.1%)
10% Yield On IJJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 165.00 2.00 38 4.8 0.00 (0.0%)

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Want more examples? IJH Dividend | IJK Dividend