IWR Dividend Type Payments

iShares Russell Mid-Cap ETF dividend

Although IWR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Russell Mid-Cap 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 Mid-Cap ETF (IWR)
Bid Ask Last Change Volume P/E Market Cap
93.54 96.62 95.85 -0.80 2.9M - 25B

IWR Dividend-Like Income Using Covered Calls

With IWR at 95.85, 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% 2.88 0.8
5% 4.79 1.3
10% 9.59 2.6

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 IWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 100.00 0.60 52 1.2 3.38 (3.5%)
Nov 21 100.00 0.25 24 1.0 3.38 (3.5%)
5% Yield On IWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 97.00 1.70 52 3.3 0.38 (0.4%)
May 15 101.00 2.75 199 1.4 4.38 (4.6%)
10% Yield On IWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 97.00 1.70 52 3.3 0.38 (0.4%)

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

 
 
Top 10 Open Interest For Nov 21 Expiration     Top 5 High Yield
1.IBIT dividend 6.INTC dividend   1.IREN dividend
2.KVUE dividend 7.TLT dividend   2.GHRS dividend
3.NVDA dividend 8.EEM dividend   3.ENVX dividend
4.SLV dividend 9.HYG dividend   4.JOBY dividend
5.GLD dividend 10.QQQ dividend   5.SOUN dividend

Want more examples? IWP Dividend | IWS Dividend