IVW Dividend Type Payments

iShares S&P 500 Growth ETF dividend

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

iShares S&P 500 Growth ETF (IVW)
Bid Ask Last Change Volume P/E Market Cap
94.58 96.52 95.78 +1.13 1.4M - 35B

IVW Dividend-Like Income Using Covered Calls

With IVW at 95.78, 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% 2.87 0.8
5% 4.79 1.3
10% 9.58 2.6

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 IVW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 97.00 1.20 16 7.5 0.48 (0.5%)
Oct 17 100.00 4.20 170 2.5 3.48 (3.6%)
5% Yield On IVW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 97.00 1.20 16 7.5 0.48 (0.5%)
Oct 17 100.00 4.20 170 2.5 3.48 (3.6%)
10% Yield On IVW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 97.00 1.20 16 7.5 0.48 (0.5%)
Oct 17 97.00 5.70 170 3.4 0.48 (0.5%)

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Want more examples? IVV Dividend | IVZ Dividend