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 Wed 4:16 PM ET):
iShares Core S&P U.S. Growth ETF (IUSG) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
111.75 |
112.30 |
112.83 |
-0.03 |
327K |
- |
16B |
IUSG Dividend-Like Income Using Covered Calls
With IUSG at 112.83, 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% |
3.38 |
0.9 |
5% |
5.64 |
1.5 |
10% |
11.28 |
3.1 |
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 |
May 17 |
112.00 |
2.00 |
24 |
7.1 |
0.00 (0.0%) |
Jun 21 |
115.00 |
0.60 |
59 |
1.0 |
2.70 (2.4%) |
5% Yield On IUSG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
112.00 |
2.00 |
24 |
7.1 |
0.00 (0.0%) |
Sep 20 |
112.00 |
5.00 |
150 |
3.1 |
0.00 (0.0%) |
10% Yield On IUSG Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
112.00 |
2.00 |
24 |
7.1 |
0.00 (0.0%) |
Sep 20 |
112.00 |
5.00 |
150 |
3.1 |
0.00 (0.0%) |
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