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 |
| 143.55 |
143.78 |
143.55 |
+1.55 |
6.9M |
- |
4.2B |
ITOT Dividend-Like Income Using Covered Calls
With ITOT at 143.55, 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% |
4.31 |
1.2 |
| 5% |
7.18 |
2.0 |
| 10% |
14.36 |
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 |
| Dec 19 |
144.00 |
1.20 |
29 |
4.1 |
0.22 (0.2%) |
| Jan 16 |
145.00 |
1.45 |
57 |
2.5 |
1.22 (0.8%) |
| 5% Yield On ITOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
144.00 |
1.20 |
29 |
4.1 |
0.22 (0.2%) |
| Jan 16 |
145.00 |
1.45 |
57 |
2.5 |
1.22 (0.8%) |
| 10% Yield On ITOT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
144.00 |
1.20 |
29 |
4.1 |
0.22 (0.2%) |
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