IVE Dividend Type Payments

iShares S&P 500 VALUE INDEX dividend

Although IVE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P 500 VALUE INDEX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

iShares S&P 500 VALUE INDEX (IVE)
Bid Ask Last Change Volume P/E Market Cap
114.20 114.28 114.26 +0.79 626K - 146B

IVE Dividend-Like Income Using Covered Calls

With IVE at 114.26, 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% 3.43 0.9
5% 5.71 1.6
10% 11.43 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 IVE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 114.00 0.45 4 4.3 0.00 (0.0%)
Sep 21 116.00 0.40 39 1.0 1.72 (1.5%)
5% Yield On IVE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 114.00 0.45 4 4.3 0.00 (0.0%)
Sep 21 115.00 0.85 39 2.2 0.72 (0.6%)
10% Yield On IVE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 114.00 0.45 4 4.3 0.00 (0.0%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
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Want more examples? IVC Dividend | IVLU Dividend