IUSV Dividend Type Payments
Although IUSV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core S&P U.S. Value 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 U.S. Value ETF (IUSV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 94.32 |
95.21 |
94.80 |
-0.55 |
823K |
- |
17B |
IUSV Dividend-Like Income Using Covered Calls
With IUSV at 94.80, 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% |
2.84 |
0.8 |
| 5% |
4.74 |
1.3 |
| 10% |
9.48 |
2.6 |
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 IUSV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
95.00 |
3.10 |
229 |
1.3 |
0.00 (0.0%) |
| Jun 20 |
95.00 |
2.05 |
138 |
1.3 |
0.00 (0.0%) |
| 5% Yield On IUSV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
95.00 |
2.05 |
138 |
1.3 |
0.00 (0.0%) |
| Feb 21 |
95.00 |
0.90 |
19 |
3.6 |
0.00 (0.0%) |
| 10% Yield On IUSV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 21 |
95.00 |
0.90 |
19 |
3.6 |
0.00 (0.0%) |
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