ITA Dividend Type Payments

I SHARES US AEROSPACE & DEFENSE dividend

Although ITA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on I SHARES US AEROSPACE & DEFENSE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:15 AM ET):

I SHARES US AEROSPACE & DEFENSE (ITA)
Bid Ask Last Change Volume P/E Market Cap
204.19 204.27 204.12 +2.45 50K - 53B

ITA Dividend-Like Income Using Covered Calls

With ITA at 204.12, 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% 6.12 1.7
5% 10.21 2.8
10% 20.41 5.6

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
Sep 21 210.00 1.00 37 2.7 5.73 (2.8%)
Oct 19 210.00 1.80 65 2.8 5.73 (2.8%)
5% Yield On ITA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 205.00 2.85 37 7.7 0.73 (0.4%)
Oct 19 205.00 4.10 65 6.3 0.73 (0.4%)
10% Yield On ITA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 205.00 2.85 37 7.7 0.73 (0.4%)
Oct 19 205.00 4.10 65 6.3 0.73 (0.4%)

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Want more examples? IT Dividend | ITB Dividend