IAI Dividend Type Payments
Although IAI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares U.S. Broker-Dealers & Securities Exchanges ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 171.84 | 173.31 | 172.59 | -0.16 | 38K | - | 0.5B |
IAI Dividend-Like Income Using Covered Calls
With IAI at 172.59, 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% | 5.18 | 1.4 |
| 5% | 8.63 | 2.4 |
| 10% | 17.26 | 4.7 |
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 IAI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 173.00 | 5.00 | 60 | 7.8 | 0.00 (0.0%) | |
| Nov 21 | 173.00 | 3.30 | 32 | 9.3 | 0.00 (0.0%) | |
| 5% Yield On IAI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 173.00 | 5.00 | 60 | 7.8 | 0.00 (0.0%) | |
| Nov 21 | 173.00 | 3.30 | 32 | 9.3 | 0.00 (0.0%) | |
| 10% Yield On IAI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 173.00 | 5.00 | 60 | 7.8 | 0.00 (0.0%) | |
| Nov 21 | 173.00 | 3.30 | 32 | 9.3 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KVUE dividend | 6. | HYG dividend | 1. | CIFR dividend | |
| 2. | IBIT dividend | 7. | TLT dividend | 2. | ARCT dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | INBX dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | BHVN dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | OSCR dividend | |
Want more examples? IAG Dividend | IAK Dividend
