IUSG Dividend Type Payments
Although IUSG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core S&P U.S. Growth ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:20 AM ET):
| iShares Core S&P U.S. Growth ETF (IUSG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 141.15 |
141.17 |
141.16 |
+0.67 |
128K |
- |
20B |
IUSG Dividend-Like Income Using Covered Calls
With IUSG at 141.16, 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% |
4.23 |
1.2 |
| 5% |
7.06 |
1.9 |
| 10% |
14.12 |
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 IUSG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
141.00 |
6.00 |
129 |
4.5 |
0.00 (0.0%) |
| Dec 19 |
145.00 |
6.00 |
220 |
2.7 |
3.83 (2.7%) |
| 5% Yield On IUSG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
141.00 |
6.00 |
129 |
4.5 |
0.00 (0.0%) |
| Dec 19 |
145.00 |
6.00 |
220 |
2.7 |
3.83 (2.7%) |
| 10% Yield On IUSG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
141.00 |
6.00 |
129 |
4.5 |
0.00 (0.0%) |
| Jun 20 |
141.00 |
2.00 |
38 |
4.8 |
0.00 (0.0%) |
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