IJK Dividend Type Payments

iShares S&P Mid-Cap 400 Growth ETF dividend

Although IJK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P Mid-Cap 400 Growth 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 S&P Mid-Cap 400 Growth ETF (IJK)
Bid Ask Last Change Volume P/E Market Cap
85.13 88.78 87.00 +0.26 118K - 9.0B

IJK Dividend-Like Income Using Covered Calls

With IJK at 87.00, 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% 2.61 0.7
5% 4.35 1.2
10% 8.70 2.4

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 IJK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 90.00 0.45 57 0.8 1.22 (1.4%)
Sep 20 90.00 1.65 148 1.1 1.22 (1.4%)
5% Yield On IJK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 89.00 2.85 239 1.2 0.22 (0.3%)

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Want more examples? IJJ Dividend | IJR Dividend