HYGH Dividend Type Payments

Although HYGH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares IR HEDGE HYG to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:10 AM ET):

iShares IR HEDGE HYG (HYGH)
Bid Ask Last Change Volume P/E Market Cap
91.57 91.58 91.58 +0.15 2K - 2.7B

HYGH Dividend-Like Income Using Covered Calls

With HYGH at 91.58, here's a table showing how big the annual "dividend" (ie. 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% 2.75 0.8
5% 4.58 1.3
10% 9.16 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:

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Top 10 Open Interest For Jun 15 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.UVXY dividend
2.EEM dividend 7.BAC dividend   2.GPS dividend
3.SPX dividend 8.HYG dividend   3.TXMD dividend
4.GE dividend 9.IWM dividend   4.CHK dividend
5.XLF dividend 10.EFA dividend   5.URBN dividend

Want more examples? HYG Dividend | HYGS Dividend