IJJ Dividend Type Payments

iShares S&P Mid-Cap 400 Value ETF dividend

Although IJJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P Mid-Cap 400 Value 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 S&P Mid-Cap 400 Value ETF (IJJ)
Bid Ask Last Change Volume P/E Market Cap
140.55 145.95 143.25 +0.18 76K - 9.3B

IJJ Dividend-Like Income Using Covered Calls

With IJJ at 143.25, 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% 4.30 1.2
5% 7.16 2.0
10% 14.33 3.9

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 IJJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 18 146.00 3.00 221 1.4 0.05 (0.0%)

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