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 10:50 AM ET):

iShares U.S. Aerospace & Defense ETF (ITA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
217.19	217.40	217.37	+1.64	274K	-	9.1B

ITA Dividend-Like Income Using Covered Calls

With ITA at 217.37, 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%	6.52	1.8
5%	10.87	3.0
10%	21.74	6.0

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 ITA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	220.00	4.30	57	7.5	2.60 (1.2%)
Nov 21	220.00	2.80	29	9.7	2.60 (1.2%)

5% Yield On ITA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	220.00	4.30	57	7.5	2.60 (1.2%)
Nov 21	220.00	2.80	29	9.7	2.60 (1.2%)

10% Yield On ITA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	220.00	4.30	57	7.5	2.60 (1.2%)
Nov 21	220.00	2.80	29	9.7	2.60 (1.2%)

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Top 10 Open Interest For Nov 21 Expiration				Top 5 High Yield
1.	IBIT dividend	6.	TLT dividend	1.	CRML dividend
2.	KVUE dividend	7.	HYG dividend	2.	UUUU dividend
3.	NVDA dividend	8.	EEM dividend	3.	IREN dividend
4.	SLV dividend	9.	QQQ dividend	4.	BHVN dividend
5.	GLD dividend	10.	INTC dividend	5.	CIFR dividend

Want more examples? IT Dividend | ITB Dividend