IEI Dividend Type Payments
Although IEI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 3-7 Year Treasury Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:55 PM ET):
| iShares 3-7 Year Treasury Bond ETF (IEI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 119.14 | 119.15 | 119.15 | -0.31 | 1.2M | - | 7.6B |
IEI Dividend-Like Income Using Covered Calls
With IEI at 119.15, 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% | 3.57 | 1.0 |
| 5% | 5.96 | 1.6 |
| 10% | 11.92 | 3.3 |
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 IEI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 119.00 | 0.70 | 45 | 1.2 | 0.00 (0.0%) | |
| Nov 21 | 119.00 | 0.40 | 17 | 1.5 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | TTD dividend | |
| 2. | KVUE dividend | 7. | INTC dividend | 2. | ENVX dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | SOUN dividend | |
| 4. | SLV dividend | 9. | HYG dividend | 4. | LCID dividend | |
| 5. | GLD dividend | 10. | SPY dividend | 5. | SG dividend | |
Want more examples? IEFA Dividend | IEMG Dividend
