IWV Dividend Type Payments

iShares RUSSELL 3000 INDEX dividend

Although IWV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares RUSSELL 3000 INDEX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:40 PM ET):

iShares RUSSELL 3000 INDEX (IWV)
Bid Ask Last Change Volume P/E Market Cap
166.92 166.95 166.82 -2.04 112K - 93B

IWV Dividend-Like Income Using Covered Calls

With IWV at 166.82, 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% 5.00 1.4
5% 8.34 2.3
10% 16.68 4.6

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 IWV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 168.00 0.15 3 5.0 1.05 (0.6%)
Sep 21 170.00 0.90 38 2.4 3.05 (1.8%)
5% Yield On IWV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 168.00 0.15 3 5.0 1.05 (0.6%)
Sep 21 170.00 0.90 38 2.4 3.05 (1.8%)
10% Yield On IWV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 168.00 0.15 3 5.0 1.05 (0.6%)
Sep 21 168.00 1.85 38 4.9 1.05 (0.6%)

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