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 Wed 4:16 PM ET):
| iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 168.87 | 172.00 | 170.04 | +0.95 | 130K | - | 0.5B |
IAI Dividend-Like Income Using Covered Calls
With IAI at 170.04, 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% | 5.10 | 1.4 |
| 5% | 8.50 | 2.3 |
| 10% | 17.00 | 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 | 172.00 | 2.50 | 31 | 8.1 | 0.00 (0.0%) | |
| Nov 21 | 172.00 | 0.05 | 3 | 1.7 | 0.00 (0.0%) | |
| 5% Yield On IAI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 172.00 | 2.50 | 31 | 8.1 | 0.00 (0.0%) | |
| Jan 16 | 175.00 | 2.00 | 59 | 3.4 | 3.00 (1.8%) | |
| 10% Yield On IAI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 172.00 | 2.50 | 31 | 8.1 | 0.00 (0.0%) | |
| Apr 17 | 172.00 | 7.40 | 150 | 4.9 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | ESTC dividend | |
| 2. | IBIT dividend | 7. | QQQ dividend | 2. | SGML dividend | |
| 3. | KVUE dividend | 8. | SLV dividend | 3. | RZLT dividend | |
| 4. | TSLA dividend | 9. | TLT dividend | 4. | VTYX dividend | |
| 5. | NFLX dividend | 10. | INTC dividend | 5. | OLMA dividend | |
Want more examples? IAG Dividend | IAK Dividend
