FLOT Dividend Type Payments
Although FLOT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Floating Rate Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:40 PM ET):
| iShares Floating Rate Bond ETF (FLOT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 50.80 | 50.81 | 50.80 | +0.04 | 1.0M | - | 6.2B |
FLOT Dividend-Like Income Using Covered Calls
With FLOT at 50.80, 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% | 1.52 | 0.4 |
| 5% | 2.54 | 0.7 |
| 10% | 5.08 | 1.4 |
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:
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | DOCS dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | ZI dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | ALT dividend | |
| 4. | IWM dividend | 9. | GLD dividend | 4. | LUNR dividend | |
| 5. | QQQ dividend | 10. | KWEB dividend | 5. | CLBT dividend | |
Want more examples? FLO Dividend | FLOW Dividend
