AOA Dividend Type Payments

iShares Core 80/20 Aggressive Allocation ETF dividend

Although AOA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core 80/20 Aggressive Allocation 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 Core 80/20 Aggressive Allocation ETF (AOA)
Bid Ask Last Change Volume P/E Market Cap
72.54 72.81 72.54 -1.25 28K - 2.0B

AOA Dividend-Like Income Using Covered Calls

With AOA at 72.54, 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% 2.18 0.6
5% 3.63 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 AOA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 73.00 1.35 152 0.9 0.19 (0.3%)
Dec 19 73.00 2.10 243 0.9 0.19 (0.3%)

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