IWP Dividend Type Payments

iShares Russell Midcap Growth ETF dividend

Although IWP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Russell Midcap Growth 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 Midcap Growth ETF (IWP)
Bid Ask Last Change Volume P/E Market Cap
119.71 120.98 120.41 +1.28 1.5M - 0.0B

IWP Dividend-Like Income Using Covered Calls

With IWP at 120.41, 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% 3.61 1.0
5% 6.02 1.6
10% 12.04 3.3

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 IWP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 124.00 0.15 10 1.5 3.02 (2.5%)
Jan 18 127.00 0.40 38 1.1 6.02 (5.0%)
5% Yield On IWP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 123.00 0.40 10 4.0 2.02 (1.7%)
Jan 18 126.00 0.70 38 1.8 5.02 (4.2%)
10% Yield On IWP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 123.00 0.40 10 4.0 2.02 (1.7%)
Jan 18 123.00 1.55 38 4.1 2.02 (1.7%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.IWM dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.VXX dividend   4. dividend
5.EWZ dividend 10.BAC dividend   5. dividend

Want more examples? IWO Dividend | IWR Dividend