IYJ Dividend Type Payments

iShares U.S. Industrials ETF dividend

Although IYJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares U.S. Industrials 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 U.S. Industrials ETF (IYJ)
Bid Ask Last Change Volume P/E Market Cap
138.40 140.37 139.33 -1.20 78K - 2.2B

IYJ Dividend-Like Income Using Covered Calls

With IYJ at 139.33, 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% 4.18 1.1
5% 6.97 1.9
10% 13.93 3.8

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 IYJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 140.00 1.55 74 1.6 0.00 (0.0%)
Jul 18 140.00 4.30 166 2.4 0.00 (0.0%)
5% Yield On IYJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 18 140.00 4.30 166 2.4 0.00 (0.0%)
Feb 21 140.00 1.40 19 5.4 0.00 (0.0%)
10% Yield On IYJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 21 140.00 1.40 19 5.4 0.00 (0.0%)

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Want more examples? IYH Dividend | IYK Dividend