ITA Dividend Type Payments

Although ITA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares U.S. Aerospace & Defense 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 U.S. Aerospace & Defense ETF (ITA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
180.04	180.99	180.44	+1.66	894K	-	7.5B

ITA Dividend-Like Income Using Covered Calls

With ITA at 180.44, here's a table showing how big the annual "dividend" (i.e. 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%	5.41	1.5
5%	9.02	2.5
10%	18.04	4.9

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 ITA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	181.00	4.50	57	7.9	0.01 (0.0%)
Oct 17	181.00	6.90	120	5.8	0.01 (0.0%)

5% Yield On ITA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	181.00	4.50	57	7.9	0.01 (0.0%)
Oct 17	181.00	6.90	120	5.8	0.01 (0.0%)

10% Yield On ITA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	181.00	4.50	57	7.9	0.01 (0.0%)
Oct 17	181.00	6.90	120	5.8	0.01 (0.0%)

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Want more examples? IT Dividend | ITB Dividend