ITA Dividend Type Payments

Although ITA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares U.S. Aerospace & Defense 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. Aerospace & Defense ETF (ITA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
207.68	208.65	207.68	-3.07	660K	-	8.9B

ITA Dividend-Like Income Using Covered Calls

With ITA at 207.68, 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%	6.23	1.7
5%	10.38	2.8
10%	20.77	5.7

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 ITA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	210.00	0.25	3	8.3	1.35 (0.7%)
Dec 19	210.00	6.10	66	9.2	1.35 (0.7%)

5% Yield On ITA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	210.00	0.25	3	8.3	1.35 (0.7%)
Dec 19	210.00	6.10	66	9.2	1.35 (0.7%)

10% Yield On ITA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	210.00	0.25	3	8.3	1.35 (0.7%)
Dec 19	210.00	6.10	66	9.2	1.35 (0.7%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Oct 17 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	INTC dividend	1.	BHVN dividend
2.	IBIT dividend	7.	SLV dividend	2.	NB dividend
3.	SPY dividend	8.	AMZN dividend	3.	SANA dividend
4.	GLD dividend	9.	QQQ dividend	4.	AREC dividend
5.	TSLA dividend	10.	OPEN dividend	5.	EU dividend

Want more examples? IT Dividend | ITB Dividend