IJS Dividend Type Payments

iShares S&P SM-CAP 600 VALUE dividend

Although IJS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P SM-CAP 600 VALUE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

iShares S&P SM-CAP 600 VALUE (IJS)
Bid Ask Last Change Volume P/E Market Cap
143.36 164.76 154.52 +1.02 254K - 60B

IJS Dividend-Like Income Using Covered Calls

With IJS at 154.52, 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% 4.64 1.3
5% 7.73 2.1
10% 15.45 4.2

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 IJS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 166.00 1.70 124 1.4 1.24 (0.8%)
May 17 168.00 2.75 215 1.3 3.24 (2.1%)

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