IYT Dividend Type Payments

iShares Transportation AverageETF dividend

Although IYT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Transportation AverageETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 9:45 AM ET):

iShares Transportation AverageETF (IYT)
Bid Ask Last Change Volume P/E Market Cap
178.61 178.95 178.75 -0.70 17K - 0.0B

IYT Dividend-Like Income Using Covered Calls

With IYT at 178.75, 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% 5.36 1.5
5% 8.94 2.4
10% 17.88 4.9

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 IYT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 190.00 0.25 12 2.1 11.05 (6.2%)
Jan 18 194.00 0.60 40 1.5 15.05 (8.4%)
5% Yield On IYT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 189.00 0.35 12 2.9 10.05 (5.6%)
Jan 18 191.00 1.05 40 2.6 12.05 (6.7%)
10% Yield On IYT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 187.00 0.60 12 5.0 8.05 (4.5%)
Jan 18 187.00 2.05 40 5.1 8.05 (4.5%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.INVH dividend 6.SILJ dividend   1. dividend
2.CB dividend 7.ISRG dividend   2. dividend
3.SHO dividend 8.CCRN dividend   3. dividend
4.IPI dividend 9.SJW dividend   4. dividend
5.CBSH dividend 10.IUSV dividend   5. dividend

Want more examples? IYR Dividend | IYW Dividend