IWX Dividend Type Payments
Although IWX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Russell Top 200 Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:40 AM ET):
| iShares Russell Top 200 Value ETF (IWX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 82.82 | 82.84 | 82.87 | +0.84 | 11K | - | 2.1B |
IWX Dividend-Like Income Using Covered Calls
With IWX at 82.87, 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% | 2.49 | 0.7 |
| 5% | 4.14 | 1.1 |
| 10% | 8.29 | 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 IWX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 83.00 | 1.30 | 187 | 0.7 | 0.16 (0.2%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | DYN dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | ALT dividend | |
| 3. | QQQ dividend | 8. | TLT dividend | 3. | CAPR dividend | |
| 4. | TSLA dividend | 9. | AAPL dividend | 4. | RUN dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | GES dividend | |
Want more examples? IWV Dividend | IWY Dividend
