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 Mon 4:16 PM ET):
| iShares Core S&P Total U.S. Stock Market ETF (ITOT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 134.69 |
135.37 |
135.04 |
+0.70 |
1.7M |
- |
4.0B |
ITOT Dividend-Like Income Using Covered Calls
With ITOT at 135.04, 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% |
4.05 |
1.1 |
| 5% |
6.75 |
1.8 |
| 10% |
13.50 |
3.7 |
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 ITOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
135.00 |
3.00 |
47 |
5.6 |
0.00 (0.0%) |
| Oct 17 |
135.00 |
5.10 |
110 |
4.3 |
0.00 (0.0%) |
| 5% Yield On ITOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
135.00 |
3.00 |
47 |
5.6 |
0.00 (0.0%) |
| Oct 17 |
135.00 |
5.10 |
110 |
4.3 |
0.00 (0.0%) |
| 10% Yield On ITOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
135.00 |
3.00 |
47 |
5.6 |
0.00 (0.0%) |
| Oct 17 |
135.00 |
5.10 |
110 |
4.3 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
