IJK Dividend Type Payments

iShares S&P MID-CAP 400 GROWTH 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 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 (IJK)
Bid Ask Last Change Volume P/E Market Cap
231.37 233.10 231.37 +0.90 32K - 81B

IJK Dividend-Like Income Using Covered Calls

With IJK at 231.37, 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% 6.94 1.9
5% 11.57 3.2
10% 23.14 6.3

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
Sep 21 235.00 0.85 36 2.4 1.90 (0.8%)
Dec 21 235.00 4.20 127 3.3 1.90 (0.8%)
5% Yield On IJK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 235.00 4.20 127 3.3 1.90 (0.8%)
Mar 15 235.00 7.00 211 3.3 1.90 (0.8%)

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Want more examples? IJJ Dividend | IJR Dividend