IVV Dividend Type Payments

iShares CORE S&P 500 ETF dividend

Although IVV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares CORE S&P 500 ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:00 PM ET):

iShares CORE S&P 500 ETF (IVV)
Bid Ask Last Change Volume P/E Market Cap
278.57 278.59 278.64 -3.92 1.4M - 1,484B

IVV Dividend-Like Income Using Covered Calls

With IVV at 278.64, 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% 8.36 2.3
5% 13.93 3.8
10% 27.86 7.6

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 IVV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 285.00 0.40 9 4.4 6.41 (2.3%)
Nov 2 285.00 1.05 16 6.6 6.41 (2.3%)
5% Yield On IVV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 285.00 0.40 9 4.4 6.41 (2.3%)
Nov 2 285.00 1.05 16 6.6 6.41 (2.3%)
10% Yield On IVV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 283.00 1.00 9 11.1 4.41 (1.6%)
Nov 2 282.50 1.95 16 12.2 3.91 (1.4%)

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Want more examples? IVR Dividend | IVW Dividend