IVW Dividend Type Payments
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 Fri 4:16 PM ET):
| iShares S&P 500 Growth ETF (IVW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 124.73 | 125.25 | 124.99 | -0.01 | 1.1M | - | 47B |
IVW Dividend-Like Income Using Covered Calls
With IVW at 124.99, 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% | 3.75 | 1.0 |
| 5% | 6.25 | 1.7 |
| 10% | 12.50 | 3.4 |
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 | |
| Jan 16 | 125.00 | 1.55 | 22 | 5.9 | 0.00 (0.0%) | |
| Apr 17 | 125.00 | 4.20 | 113 | 3.5 | 0.00 (0.0%) | |
| 5% Yield On IVW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 125.00 | 1.55 | 22 | 5.9 | 0.00 (0.0%) | |
| Apr 17 | 125.00 | 4.20 | 113 | 3.5 | 0.00 (0.0%) | |
| 10% Yield On IVW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 125.00 | 1.55 | 22 | 5.9 | 0.00 (0.0%) | |
| Apr 17 | 125.00 | 4.20 | 113 | 3.5 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | DAWN dividend | |
| 2. | INTC dividend | 7. | GLD dividend | 2. | IMRX dividend | |
| 3. | TLT dividend | 8. | NIO dividend | 3. | TMC dividend | |
| 4. | IBIT dividend | 9. | NFLX dividend | 4. | PGR dividend | |
| 5. | AAPL dividend | 10. | SPY dividend | 5. | RARE dividend | |
Want more examples? IVV Dividend | IVZ Dividend
