IVV Dividend Type Payments

iShares Core S&P 500 ETF dividend

Although IVV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core S&P 500 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 Core S&P 500 ETF (IVV)
Bid Ask Last Change Volume P/E Market Cap
673.95 674.00 672.41 -7.43 11.4M - 503B

IVV Dividend-Like Income Using Covered Calls

With IVV at 672.41, 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% 20.17 5.5
5% 33.62 9.2
10% 67.24 18.4

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 IVV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 671.00 4.40 3 46.7 0.00 (0.0%)
Dec 26 671.00 7.00 10 40.0 0.00 (0.0%)
5% Yield On IVV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 671.00 4.40 3 46.7 0.00 (0.0%)
Dec 26 671.00 7.00 10 40.0 0.00 (0.0%)
10% Yield On IVV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 671.00 4.40 3 46.7 0.00 (0.0%)
Dec 26 671.00 7.00 10 40.0 0.00 (0.0%)

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Want more examples? IVR Dividend | IVW Dividend