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 Mon 4:16 PM ET):

iShares S&P SM-CAP 600 GROWTH (IJT)
Bid Ask Last Change Volume P/E Market Cap
190.00 202.48 202.48 +0.29 153K - 62B

IJT Dividend-Like Income Using Covered Calls

With IJT at 202.48, 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% 6.07 1.7
5% 10.12 2.8
10% 20.25 5.5

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
Sep 21 205.00 1.00 33 3.0 2.52 (1.2%)
Oct 19 205.00 2.10 61 3.4 2.52 (1.2%)
5% Yield On IJT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 205.00 1.00 33 3.0 2.52 (1.2%)
Oct 19 205.00 2.10 61 3.4 2.52 (1.2%)

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