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
179.41 191.71 180.87 -2.35 363K - 62B

IJT Dividend-Like Income Using Covered Calls

With IJT at 180.87, 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% 5.43 1.5
5% 9.04 2.5
10% 18.09 5.0

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
Jan 18 195.00 1.45 92 1.6 3.29 (1.8%)

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