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
78.41 81.99 79.10 -0.78 3.2M - 430B

IJR Dividend-Like Income Using Covered Calls

With IJR at 79.10, 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% 2.37 0.7
5% 3.96 1.1
10% 7.91 2.2

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
Nov 16 84.00 0.20 29 0.7 2.01 (2.5%)
Feb 15 85.00 0.95 120 0.8 3.01 (3.8%)
5% Yield On IJR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 83.00 0.35 29 1.2 1.01 (1.3%)
Feb 15 83.00 1.50 120 1.3 1.01 (1.3%)
10% Yield On IJR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 82.00 0.65 29 2.2 0.01 (0.0%)

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Want more examples? IJK Dividend | IJS Dividend