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 1:55 PM ET):

iShares Russell Mid-Cap ETF (IWR)
Bid Ask Last Change Volume P/E Market Cap
83.58 83.60 83.58 -0.59 1.1M - 22B

IWR Dividend-Like Income Using Covered Calls

With IWR at 83.58, 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% 2.51 0.7
5% 4.18 1.1
10% 8.36 2.3

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 IWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 84.00 4.10 108 3.8 0.40 (0.5%)
May 16 84.00 1.45 17 8.5 0.40 (0.5%)
5% Yield On IWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 84.00 4.10 108 3.8 0.40 (0.5%)
May 16 84.00 1.45 17 8.5 0.40 (0.5%)
10% Yield On IWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 84.00 4.10 108 3.8 0.40 (0.5%)
May 16 84.00 1.45 17 8.5 0.40 (0.5%)

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Want more examples? IWP Dividend | IWS Dividend