IWO Dividend Type Payments

Although IWO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Russell 2000 Growth Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

iShares Russell 2000 Growth Fund (IWO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
329.83	332.03	331.06	-1.94	413K	-	14B

IWO Dividend-Like Income Using Covered Calls

With IWO at 331.06, 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%	9.93	2.7
5%	16.55	4.5
10%	33.11	9.1

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 IWO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	335.00	15.10	141	10.7	2.97 (0.9%)
Jan 16	335.00	1.65	22	7.5	2.97 (0.9%)

5% Yield On IWO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	335.00	15.10	141	10.7	2.97 (0.9%)
Jan 16	335.00	1.65	22	7.5	2.97 (0.9%)

10% Yield On IWO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	335.00	15.10	141	10.7	2.97 (0.9%)
Feb 20	335.00	6.60	57	11.6	2.97 (0.9%)

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Want more examples? IWN Dividend | IWP Dividend