OEF Dividend Type Payments

iShares S&P 100 ETF dividend

Although OEF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P 100 ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:25 AM ET):

iShares S&P 100 ETF (OEF)
Bid Ask Last Change Volume P/E Market Cap
329.64 329.69 329.59 +1.67 124K - 17B

OEF Dividend-Like Income Using Covered Calls

With OEF at 329.59, 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% 9.89 2.7
5% 16.48 4.5
10% 32.96 9.0

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 OEF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 330.00 4.10 33 12.4 0.31 (0.1%)
Sep 19 330.00 1.20 5 24.0 0.31 (0.1%)
5% Yield On OEF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 330.00 4.10 33 12.4 0.31 (0.1%)
Sep 19 330.00 1.20 5 24.0 0.31 (0.1%)
10% Yield On OEF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 330.00 4.10 33 12.4 0.31 (0.1%)
Sep 19 330.00 1.20 5 24.0 0.31 (0.1%)

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