ISTB Dividend Type Payments
Although ISTB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core 1-5 Year USD 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 4:16 PM ET):
iShares Core 1-5 Year USD Bond ETF (ISTB) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
42.48 | 50.87 | 47.00 | +0.07 | 200K | - | 5.9B |
ISTB Dividend-Like Income Using Covered Calls
With ISTB at 47.00, 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% | 1.41 | 0.4 |
5% | 2.35 | 0.6 |
10% | 4.70 | 1.3 |
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:
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | FSLY dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | WOLF dividend | |
3. | QQQ dividend | 8. | TSLA dividend | 3. | PENN dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | ENVX dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend |
Want more examples? ISSC Dividend | ISZE Dividend