IYJ Dividend Type Payments

iShares US INDUSTRIALS ETF dividend

Although IYJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares US INDUSTRIALS ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

iShares US INDUSTRIALS ETF (IYJ)
Bid Ask Last Change Volume P/E Market Cap
147.38 149.44 148.48 +2.96 134K - 10B

IYJ Dividend-Like Income Using Covered Calls

With IYJ at 148.48, 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% 4.45 1.2
5% 7.42 2.0
10% 14.85 4.1

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 IYJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 151.00 0.10 4 2.5 1.56 (1.1%)
Nov 16 155.00 0.45 32 1.4 5.56 (3.7%)
5% Yield On IYJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 151.00 0.10 4 2.5 1.56 (1.1%)
Nov 16 153.00 0.90 32 2.8 3.56 (2.4%)
10% Yield On IYJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 150.00 0.30 4 7.5 0.56 (0.4%)
Nov 16 151.00 1.60 32 5.0 1.56 (1.1%)

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Want more examples? IYH Dividend | IYK Dividend