IGLB Dividend Type Payments
Although IGLB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 10 Year Investment Grade Corporate Bond 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 10 Year Investment Grade Corporate Bond ETF (IGLB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 49.07 | 50.31 | 50.22 | +0.52 | 1.0M | - | 2.7B |
IGLB Dividend-Like Income Using Covered Calls
With IGLB at 50.22, 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% | 1.51 | 0.4 |
| 5% | 2.51 | 0.7 |
| 10% | 5.02 | 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:
| 3% Yield On IGLB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 51.00 | 0.40 | 78 | 0.5 | 0.69 (1.4%) | |
| Sep 19 | 51.00 | 0.25 | 50 | 0.5 | 0.69 (1.4%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | UPST dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | PTON dividend | |
| 3. | GLD dividend | 8. | QQQ dividend | 3. | APPS dividend | |
| 4. | IWM dividend | 9. | AMZN dividend | 4. | QBTS dividend | |
| 5. | SPY dividend | 10. | AAPL dividend | 5. | LYFT dividend | |
Want more examples? IGIB Dividend | IGM Dividend
