IWR Dividend Type Payments

iShares Russell Mid-Cap ETF dividend

Although IWR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Russell Mid-Cap 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 Russell Mid-Cap ETF (IWR)
Bid Ask Last Change Volume P/E Market Cap
91.41 92.65 92.07 -0.80 1.4M - 24B

IWR Dividend-Like Income Using Covered Calls

With IWR at 92.07, 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% 2.76 0.8
5% 4.60 1.3
10% 9.21 2.5

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 IWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 93.00 3.10 197 1.6 0.35 (0.4%)
May 16 93.00 2.75 106 2.6 0.35 (0.4%)
5% Yield On IWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 93.00 3.10 197 1.6 0.35 (0.4%)
May 16 93.00 2.75 106 2.6 0.35 (0.4%)
10% Yield On IWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 93.00 2.75 106 2.6 0.35 (0.4%)
Feb 21 93.00 0.90 22 4.1 0.35 (0.4%)

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Want more examples? IWP Dividend | IWS Dividend