IWN Dividend Type Payments

Although IWN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares RUSSELL 2000 VALUE IND to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:55 AM ET):

iShares RUSSELL 2000 VALUE IND (IWN)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
135.55	135.56	135.55	-0.33	403K	-	105B

IWN Dividend-Like Income Using Covered Calls

With IWN at 135.55, 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%	4.07	1.1
5%	6.78	1.9
10%	13.56	3.7

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 IWN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 19	138.00	0.45	29	1.6	2.44 (1.8%)
Nov 16	140.00	0.65	57	1.1	4.44 (3.3%)

5% Yield On IWN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 19	137.00	0.75	29	2.6	1.44 (1.1%)
Nov 16	138.00	1.25	57	2.2	2.44 (1.8%)

10% Yield On IWN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 19	136.00	1.20	29	4.1	0.44 (0.3%)
Nov 16	136.00	2.20	57	3.9	0.44 (0.3%)

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