REZ Dividend Type Payments
Although REZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Residential and Multisector Real Estate 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 Residential and Multisector Real Estate ETF (REZ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 83.02 | 86.02 | 84.58 | +1.32 | 106K | - | 0.8B |
REZ Dividend-Like Income Using Covered Calls
With REZ at 84.58, 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% | 2.54 | 0.7 |
| 5% | 4.23 | 1.2 |
| 10% | 8.46 | 2.3 |
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 REZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 86.00 | 1.15 | 35 | 3.2 | 0.00 (0.0%) | |
| Oct 17 | 86.00 | 4.40 | 218 | 2.0 | 0.00 (0.0%) | |
| 5% Yield On REZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 86.00 | 1.15 | 35 | 3.2 | 0.00 (0.0%) | |
| Oct 17 | 86.00 | 4.40 | 218 | 2.0 | 0.00 (0.0%) | |
| 10% Yield On REZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 86.00 | 1.15 | 35 | 3.2 | 0.00 (0.0%) | |
| Jul 18 | 86.00 | 3.20 | 127 | 2.5 | 0.00 (0.0%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | KWEB dividend | 2. | ZIM dividend | |
| 3. | IWM dividend | 8. | TSLA dividend | 3. | RGTI dividend | |
| 4. | FXI dividend | 9. | INTC dividend | 4. | SLNO dividend | |
| 5. | QQQ dividend | 10. | TLT dividend | 5. | SOUN dividend | |
Want more examples? REYN Dividend | REZI Dividend
