ITOT Dividend Type Payments
Although ITOT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core S&P Total U.S. Stock Market ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| iShares Core S&P Total U.S. Stock Market ETF (ITOT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 143.90 |
144.27 |
143.97 |
-0.21 |
1.1M |
- |
4.3B |
ITOT Dividend-Like Income Using Covered Calls
With ITOT at 143.97, 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% |
4.32 |
1.2 |
| 5% |
7.20 |
2.0 |
| 10% |
14.40 |
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 ITOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
145.00 |
0.80 |
36 |
2.2 |
0.73 (0.5%) |
| Sep 19 |
145.00 |
0.35 |
8 |
4.4 |
0.73 (0.5%) |
| 5% Yield On ITOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
145.00 |
0.80 |
36 |
2.2 |
0.73 (0.5%) |
| Sep 19 |
145.00 |
0.35 |
8 |
4.4 |
0.73 (0.5%) |
| 10% Yield On ITOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
145.00 |
0.35 |
8 |
4.4 |
0.73 (0.5%) |
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