IWM Dividend Type Payments

iShares Russell 2000 ETF dividend

Although IWM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Russell 2000 ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:50 PM ET):

iShares Russell 2000 ETF (IWM)
Bid Ask Last Change Volume P/E Market Cap
235.71 235.72 235.71 -2.06 9.8M - 52B

IWM Dividend-Like Income Using Covered Calls

With IWM at 235.71, 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% 7.07 1.9
5% 11.79 3.2
10% 23.57 6.5

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 IWM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 235.00 2.96 9 24.9 0.00 (0.0%)
Dec 27 235.00 3.66 16 18.4 0.00 (0.0%)
5% Yield On IWM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 235.00 2.96 9 24.9 0.00 (0.0%)
Dec 27 235.00 3.66 16 18.4 0.00 (0.0%)
10% Yield On IWM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 235.00 2.96 9 24.9 0.00 (0.0%)
Dec 27 235.00 3.66 16 18.4 0.00 (0.0%)

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Top 10 Open Interest For Dec 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.HUT dividend
2.SPY dividend 7.QQQ dividend   2.TEM dividend
3.FXI dividend 8.KWEB dividend   3.ACHR dividend
4.XLF dividend 9.TLT dividend   4.IREN dividend
5.EEM dividend 10.EWZ dividend   5.SERV dividend

Want more examples? IWL Dividend | IWN Dividend