IJT Dividend Type Payments

iShares S&P Sm-Cap 600 Growth dividend

Although IJT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P Sm-Cap 600 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 Sm-Cap 600 Growth (IJT)
Bid Ask Last Change Volume P/E Market Cap
184.85 185.89 185.89 +0.53 107K - 5.8B

IJT Dividend-Like Income Using Covered Calls

With IJT at 185.89, 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% 5.58 1.5
5% 9.29 2.5
10% 18.59 5.1

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 IJT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 189.00 0.70 22 3.2 3.11 (1.7%)
Apr 18 193.00 0.95 56 1.7 7.11 (3.8%)
5% Yield On IJT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 189.00 0.70 22 3.2 3.11 (1.7%)
Apr 18 190.00 1.85 56 3.3 4.11 (2.2%)
10% Yield On IJT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 187.00 1.45 22 6.6 1.11 (0.6%)
Apr 18 187.00 2.95 56 5.3 1.11 (0.6%)

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