WOOD Dividend Type Payments

iShares Global Timber & Forestry ETF dividend

Although WOOD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Global Timber & Forestry 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 Global Timber & Forestry ETF (WOOD)
Bid Ask Last Change Volume P/E Market Cap
68.50 72.65 72.47 +0.55 16K - 0.2B

WOOD Dividend-Like Income Using Covered Calls

With WOOD at 72.47, 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% 2.17 0.6
5% 3.62 1.0
10% 7.25 2.0

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 WOOD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 73.00 0.55 29 1.9 0.35 (0.5%)
5% Yield On WOOD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 73.00 0.55 29 1.9 0.35 (0.5%)

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