HYS Dividend Type Payments

PIMCO 0-5-YEAR HI YIELD CORP BON dividend

Although HYS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PIMCO 0-5-YEAR HI YIELD CORP BON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

PIMCO 0-5-YEAR HI YIELD CORP BON (HYS)
Bid Ask Last Change Volume P/E Market Cap
100.26 100.47 100.47 +0.11 280K - 14B

HYS Dividend-Like Income Using Covered Calls

With HYS at 100.47, 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% 3.01 0.8
5% 5.02 1.4
10% 10.05 2.8

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:

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
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Want more examples? HYMB Dividend | HYUP Dividend