IWC Dividend Type Payments

iShares RUSSELL MICRO-CAP INDEX dividend

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

iShares RUSSELL MICRO-CAP INDEX (IWC)
Bid Ask Last Change Volume P/E Market Cap
94.79 106.87 106.67 +0.40 24K - 11B

IWC Dividend-Like Income Using Covered Calls

With IWC at 106.67, 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% 3.20 0.9
5% 5.33 1.5
10% 10.67 2.9

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 IWC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 109.00 0.35 33 1.1 2.13 (2.0%)
Oct 19 110.00 0.65 61 1.1 3.13 (2.9%)
5% Yield On IWC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 108.00 0.65 33 2.0 1.13 (1.1%)
Oct 19 108.00 1.45 61 2.4 1.13 (1.1%)
10% Yield On IWC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 107.00 1.10 33 3.3 0.13 (0.1%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
2.SPY dividend 7.GLD dividend   2.MOMO dividend
3.SPX dividend 8.FB dividend   3.UVXY dividend
4.QQQ dividend 9.IWM dividend   4.AKRX dividend
5.XLF dividend 10.GDX dividend   5.LB dividend

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