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 12:45 PM ET):

iShares S&P 500 Growth ETF (IVW)
Bid Ask Last Change Volume P/E Market Cap
166.82 166.84 166.84 -0.14 229K - 0.0B

IVW Dividend-Like Income Using Covered Calls

With IVW at 166.84, 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% 5.01 1.4
5% 8.34 2.3
10% 16.68 4.6

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
Mar 15 170.00 0.35 23 1.5 3.16 (1.9%)
Apr 18 171.00 1.10 57 1.9 4.16 (2.5%)
5% Yield On IVW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 169.00 0.80 23 3.5 2.16 (1.3%)
Apr 18 170.00 1.50 57 2.6 3.16 (1.9%)
10% Yield On IVW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 168.00 1.15 23 5.0 1.16 (0.7%)
Apr 18 167.00 3.00 57 5.3 0.16 (0.1%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ROKU dividend
2.EEM dividend 7.GE dividend   2.OLED dividend
3.SPY dividend 8.LLY dividend   3.FSLR dividend
4.QQQ dividend 9.BAC dividend   4.IQ dividend
5.FXI dividend 10.GLD dividend   5.TTD dividend

Want more examples? IVV Dividend | IVZ Dividend