IWD Dividend Type Payments
Although IWD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Russell 1000 Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:40 AM ET):
| iShares Russell 1000 Value ETF (IWD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 180.88 | 180.91 | 180.90 | -1.17 | 399K | - | 42B |
IWD Dividend-Like Income Using Covered Calls
With IWD at 180.90, 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% | 5.43 | 1.5 |
| 5% | 9.05 | 2.5 |
| 10% | 18.09 | 5.0 |
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 IWD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 181.00 | 6.50 | 108 | 6.0 | 0.09 (0.0%) | |
| May 16 | 181.00 | 1.60 | 17 | 9.4 | 0.09 (0.0%) | |
| 5% Yield On IWD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 181.00 | 6.50 | 108 | 6.0 | 0.09 (0.0%) | |
| May 16 | 181.00 | 1.60 | 17 | 9.4 | 0.09 (0.0%) | |
| 10% Yield On IWD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 181.00 | 6.50 | 108 | 6.0 | 0.09 (0.0%) | |
| May 16 | 181.00 | 1.60 | 17 | 9.4 | 0.09 (0.0%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | ZETA dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | TDOC dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | ENVX dividend | |
| 4. | SLV dividend | 9. | SNAP dividend | 4. | ABR dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | RDDT dividend | |
Want more examples? IWC Dividend | IWF Dividend
