IYW Dividend Type Payments

iShares US Tech ETF dividend

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

iShares US Tech ETF (IYW)
Bid Ask Last Change Volume P/E Market Cap
203.56 206.52 204.58 -1.39 71K - 0.0B

IYW Dividend-Like Income Using Covered Calls

With IYW at 204.58, 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% 6.14 1.7
5% 10.23 2.8
10% 20.46 5.6

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 IYW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 210.00 1.30 29 4.5 3.48 (1.7%)
Sep 20 210.00 3.20 64 5.0 3.48 (1.7%)
5% Yield On IYW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 210.00 1.30 29 4.5 3.48 (1.7%)
Sep 20 210.00 3.20 64 5.0 3.48 (1.7%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.FXI dividend 7.NIO dividend   2.HAL dividend
3.EEM dividend 8.BAC dividend   3.ITCI dividend
4.SPX dividend 9.GLD dividend   4.TWTR dividend
5.GDX dividend 10.EWZ dividend   5.CRWD dividend

Want more examples? IYT Dividend | IYY Dividend