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 Wed 4:16 PM ET):

iShares Russell 2000 ETF (IWM)
Bid Ask Last Change Volume P/E Market Cap
152.54 152.60 152.53 -1.29 13.5M - 0.0B

IWM Dividend-Like Income Using Covered Calls

With IWM at 152.53, 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% 4.58 1.3
5% 7.63 2.1
10% 15.25 4.2

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
May 24 156.00 0.04 3 1.3 3.40 (2.2%)
May 31 157.50 0.14 10 1.4 4.90 (3.2%)
5% Yield On IWM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 155.50 0.07 3 2.3 2.90 (1.9%)
May 31 156.50 0.26 10 2.6 3.90 (2.6%)
10% Yield On IWM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 154.50 0.20 3 6.7 1.90 (1.2%)
May 31 155.50 0.47 10 4.7 2.90 (1.9%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Jun 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.ADSK dividend
2.SPX dividend 7.BAC dividend   2.OSTK dividend
3.EEM dividend 8.VXX dividend   3.MDT dividend
4.QQQ dividend 9.AAPL dividend   4.NIO dividend
5.EWZ dividend 10.EFA dividend   5.ROKU dividend

Want more examples? IWL Dividend | IWN Dividend