IJR Dividend Type Payments

iShares CORE S&P SMALL-CAP ETF dividend

Although IJR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares CORE S&P SMALL-CAP 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 CORE S&P SMALL-CAP ETF (IJR)
Bid Ask Last Change Volume P/E Market Cap
87.76 88.57 88.19 +0.55 3.0M - 430B

IJR Dividend-Like Income Using Covered Calls

With IJR at 88.19, 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% 2.65 0.7
5% 4.41 1.2
10% 8.82 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 IJR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 90.00 0.45 36 1.3 1.43 (1.6%)
Nov 16 91.00 0.95 92 1.0 2.43 (2.8%)
5% Yield On IJR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 90.00 0.45 36 1.3 1.43 (1.6%)
Nov 16 90.00 1.40 92 1.5 1.43 (1.6%)

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Want more examples? IJK Dividend | IJS Dividend