IUSG Dividend Type Payments
Although IUSG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core S&P U.S. Growth 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 Core S&P U.S. Growth ETF (IUSG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 170.05 |
170.76 |
170.33 |
-0.05 |
469K |
- |
24B |
IUSG Dividend-Like Income Using Covered Calls
With IUSG at 170.33, 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% |
5.11 |
1.4 |
| 5% |
8.52 |
2.3 |
| 10% |
17.03 |
4.7 |
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 IUSG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
171.00 |
1.00 |
22 |
4.5 |
0.24 (0.1%) |
| Jun 18 |
170.00 |
9.10 |
175 |
4.8 |
0.00 (0.0%) |
| 5% Yield On IUSG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
171.00 |
1.00 |
22 |
4.5 |
0.24 (0.1%) |
| Jun 18 |
170.00 |
9.10 |
175 |
4.8 |
0.00 (0.0%) |
| 10% Yield On IUSG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
170.00 |
9.10 |
175 |
4.8 |
0.00 (0.0%) |
| Feb 20 |
171.00 |
3.00 |
57 |
5.3 |
0.24 (0.1%) |
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