IJS Dividend Type Payments

iShares S&P SmallCap 600 Value ETF dividend

Although IJS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P SmallCap 600 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 SmallCap 600 Value ETF (IJS)
Bid Ask Last Change Volume P/E Market Cap
124.50 129.42 126.36 +0.28 136K - 9.3B

IJS Dividend-Like Income Using Covered Calls

With IJS at 126.36, 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% 3.79 1.0
5% 6.32 1.7
10% 12.64 3.5

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 IJS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 130.00 0.70 39 1.8 0.58 (0.5%)
May 15 130.00 2.00 95 2.1 0.58 (0.5%)
5% Yield On IJS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 130.00 0.70 39 1.8 0.58 (0.5%)
May 15 130.00 2.00 95 2.1 0.58 (0.5%)

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Want more examples? IJR Dividend | IJT Dividend