IWS Dividend Type Payments

iShares Russell Mid-cap Value ETF dividend

Although IWS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Russell Mid-cap Value 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 Value ETF (IWS)
Bid Ask Last Change Volume P/E Market Cap
130.13 136.45 133.70 -1.04 323K - 17B

IWS Dividend-Like Income Using Covered Calls

With IWS at 133.70, 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% 4.01 1.1
5% 6.69 1.8
10% 13.37 3.7

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 IWS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 136.00 4.30 197 2.0 0.00 (0.0%)
May 16 136.00 2.80 106 2.2 0.00 (0.0%)
5% Yield On IWS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 136.00 4.30 197 2.0 0.00 (0.0%)
May 16 136.00 2.80 106 2.2 0.00 (0.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Feb 21 Expiration     Top 5 High Yield
1.NVDA dividend 6.TSLA dividend   1.LUMN dividend
2.TLT dividend 7.SLV dividend   2.AFRM dividend
3.SPY dividend 8.QQQ dividend   3.QBTS dividend
4.IWM dividend 9.KWEB dividend   4.BYON dividend
5.FXI dividend 10.IBIT dividend   5.SYM dividend

Want more examples? IWR Dividend | IWV Dividend